On the 16th, Taiwan Semiconductor held its post-earnings conference call for Q1 2026.
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The company stated it expects second-quarter sales to range between $39 billion and $40.2 billion, compared to market estimates of $38.11 billion. Gross margin is projected at 65.5% to 67.5%, versus market expectations of 64.1%. Operating profit margin is forecast at 56.5% to 58.5%.
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The company noted that the Middle East crisis could impact its profitability. Helium and hydrogen procurement sources are drawn from multiple regions. Short-term raw material supply is not expected to be affected.
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Capital expenditure in 2026 will target the high end of the $52 billion to $56 billion range. Sales (in USD) for 2026 are expected to grow by over 30%.
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Given the situation in the Middle East, business planning is being conducted cautiously. AI demand remains &#34;extremely strong.&#34; AI demand remains &#34;extremely strong.&#34; Customers have sent very strong demand signals. Company capacity remains tight. Attention is being paid to the impact of rising component prices.
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N2 process technology has entered mass production. To meet robust AI demand, capital expenditure is being increased to expand N3 capacity. Mature process capacity in Japan and Germany is being enhanced. Plans are in place to gradually phase out 6-inch wafer fabs. We will continue to optimize our capacity strategy.
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Customers are highly focused on the A14 process, with mass production expected to begin in 2028.
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Intel and Tesla are both customers and competitors; Intel is a formidable competitor. We recognize the technical offerings from competitors as highly attractive. We remain confident in our own technological position. COPOS pilot production lines are under construction.
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There is strong confidence in the super-trend of AI, with capital expenditure over the next three years set to significantly exceed that of the past three years.
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Taiwan Semiconductor also released its Q1 2026 financial results on the same day. Net profit reached 572.5 billion New Taiwan dollars, a 58% year-over-year increase, while revenue totaled 1.134 trillion New Taiwan dollars, up 35% year-over-year. Gross margin surged to 66.2%. Boosted by AI demand, the HPC platform contributed over 60% of revenue, while advanced processes such as 3nm and 5nm accounted for 74% of total revenue.
<img src="https://imageproxy.pbkrs.com/https://wpimg-wscn.awtmt.com/0015b7c3-ff33-4ef2-823f-8483b0211892.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" alt="" original-src="https://imageproxy.pbkrs.com/https://wpimg-wscn.awtmt.com/0015b7c3-ff33-4ef2-823f-8483b0211892.png"/>
More news to follow, updates ongoing...

TSMC just released its Q1 2026 financial report, showing a 58% year-on-year surge in net profit and a gross margin soaring to 66.2%, completely outperforming market expectations—driven by AI demand, the chip giant's profitability continues to break records. What are your thoughts on TSMC's future development?

TSMC just released its Q1 2026 financial report, showing a 58% year-on-year surge in net profit and a gross margin soaring to 66.2%, completely outperforming market expectations—driven by AI demand, the chip giant's profitability continues to break records. What are your thoughts on TSMC's future development?

TSMC Q1 earnings: Net profit up 58% year-over-year.

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More news to follow, updates ongoing

- TSMC held its Q1 2026 earnings conference, reporting a net profit of NT$ 572.5 billion, a 58% increase year-on-year, with revenue of NT$ 1.134 trillion, up 35%.  
- The company forecasts Q2 sales between $39 billion and $40.2 billion, exceeding market estimates, and anticipates continued strong demand from AI.  
- TSMC plans to increase capital expenditures to meet demand and has entered mass production of its N2 process while enhancing capacity in Japan and Germany.

Taiwan Semiconductor Earnings Call: FY2026 CapEx Targeting High End of $52B-$56B Range; Middle East Crisis May Impact Profitability