<ul>
<li>Net profit expected to jump 50% in first-quarter</li>
<li>TSMC benefiting more than other chip foundries from AI boom</li>
<li>First-quarter revenue rose 35%</li>
<li>Earnings call on Thursday at 0600 GMT</li>
</ul>
By Wen-Yee Lee and Ben Blanchard
TAIPEI, April 13 (Reuters) - TSMC, the world’s largest manufacturer of advanced artificial intelligence chips, will likely notch up a fourth consecutive quarter of record earnings with a 50% surge in net profit for January-March thanks to booming demand for AI infrastructure.
Analysts say that demand for Taiwan Semiconductor Manufacturing Co’s (2330.TW) 3-nanometre technology to produce AI chips and its advanced packaging technology continues to outstrip the firm’s current production capacity.
That’s driven Asia’s most valuable company, a key supplier to Nvidia (NVDA.O) and Apple (AAPL.O) , to new heights. Its market capitalisation is now nearly double that of South Korean rival Samsung Electronics (005930.KS) at around $1.6 trillion.
On Thursday, TSMC is expected to report a net profit of T$542.6 billion ($17.1 billion) for the quarter, according to an LSEG SmartEstimate compiled from 19 analysts. SmartEstimates place greater weight on forecasts from analysts who are more consistently accurate.
An earnings call at which it will provide second-quarter and updated full-year guidance is scheduled for 0600 GMT.
Any profit result above T$505.7 billion would mark the company’s highest-ever quarterly net income and its ninth consecutive quarter of profit growth.
Last week, it posted a 35% year-on-year rise in first-quarter revenue, ahead of market forecasts.
Looking ahead, “we expect higher quarter-on-quarter revenue growth guidance for the second quarter of 2026, driven by sustained AI demand and advanced-node leadership,” Arthur Lai, head of technology research for Asia at Macquarie Capital, said in a note to clients.
The war in the Middle East threatens to disrupt the supply of production materials for semiconductors such as helium and neon, but TSMC is seen as well-placed to weather the crisis.
“TSMC’s diversified sourcing and safety stock should be sufficient to manage short-term disruptions,” said Galen Zeng, senior research manager at IDC.
One area of focus will be whether TSMC maintains or raises its 2026 capital spending plans as that will reflect management’s confidence in long-term AI demand, Zeng said.
TSMC is investing $165 billion to build chip factories in the U.S. state of Arizona.
The company has also revised its plans in Japan and is now set to manufacture 3-nanometre chips there, instead of focusing on more mature nodes.
TSMC’s Taipei-listed shares have gained 28% so far this year, outperforming the 22% rise for the broader market (.TWII) . ($1 = 31.7730 Taiwan dollars)

TSMC will release its full Q1 2026 financial report tomorrow (April 16). Revenue is expected to exceed NT$1 trillion, a 35% year-on-year increase, with net profit projected to surge by 50%. The sustainability of AI chip demand and the trend in gross margin are the biggest points of interest for the market. Are you optimistic about TSMC's future prospects?

TSMC will release its full Q1 2026 financial report tomorrow (April 16). Revenue is expected to exceed NT$1 trillion, a 35% year-on-year increase, with net profit projected to surge by 50%. The sustainability of AI chip demand and the trend in gross margin are the biggest points of interest for the market. Are you optimistic about TSMC's future prospects?

TSMC Q1 Earnings Approaching: What’s Your View?

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- TSMC is projected to achieve a 50% increase in net profit for the first quarter of 2026, driven by soaring AI demand.  
- The company anticipates reporting T$542.6 billion ($17.1 billion) in net profit, marking its highest-ever quarterly income if it exceeds T$505.7 billion.  
- Despite geopolitical risks affecting materials supply, TSMC's diversified sourcing strategies position it to navigate potential disruptions effectively.

Reuters

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PREVIEW-TSMC likely to book fourth straight quarter of record profit on insatiable AI demand