Taiwan Semiconductor Manufacturing Company’s logo is seen in the background beside a printed circuit board. <\/p>\n
Sopa Images | Lightrocket | Getty Images<\/p>\n
Taiwan Semiconductor Manufacturing Company on Thursday reported a 58% increase in first-quarter profit, beating estimates and hitting a fresh record as demand for artificial intelligence chips stayed strong.<\/p>\n
Here are the company’s results versus LSEG SmartEstimates, which are weighted toward forecasts from analysts who are more consistently accurate:<\/p>\n
Revenue: 1.134 trillion new Taiwan dollars ($35 billion), vs. NT$1.127 trillion expectedNet income: NT$572.48 billion, vs. NT$543.32 billion\u00a0<\/p>\n
TSMC’s net income of NT$572.48 billion for the three months ended in March represented a fourth consecutive quarter of record profits.\u00a0<\/p>\n
Meanwhile, the company’s revenue rose to NT$1.134 trillion, beating estimates. It had first reported the 35% year-on-year rise<\/a> in first-quarter revenue last week.<\/p>\n TSMC, Asia’s largest technology company by market capitalization, has maintained sustained demand for advanced semiconductors from its key customers, such as\u00a0Apple<\/a>, even as concerns persist about supply chain disruptions from the Middle East conflict and the potential impact on demand.<\/p>\n During an earnings call, TSMC executives said the company does not expect any near-term impact on its operations from recent disruptions to global energy supplies. <\/p>\n The company also said it was adding an advanced chip fabrication plant in Tainan, Taiwan, as it attempts to keep up with strong demand. <\/p>\n TSMC manufactures chips for everything from consumer electronics to data centers, and has benefited greatly from the proliferation of AI, producing advanced processors designed by the likes of Nvidia<\/a> \u2014 now the company’s largest customer \u2014 and AMD<\/a>.\u00a0<\/p>\n TSMC’s high-performance computing<\/a> division, which includes AI and 5G applications, accounted for the majority of sales in the first quarter, rising to 61% of revenue.<\/p>\n Meanwhile, the company said advanced chips, with sizes 7-nanometer or smaller, accounted for about 74% of TSMC’s total wafer revenue in the quarter. TSMC’s shipments of advanced chips under 3-nanometers accounted for 25% of total wafer revenue.\u00a0<\/p>\n In semiconductor technology, smaller nanometer sizes signify more compact transistor designs, which lead to greater processing power and efficiency.<\/p>\n