TSMC Q1 2025 Earnings Surge 60.3% on Strong Semiconductor Demand

Taiwan Semiconductor Manufacturing Company (TSMC) has announced its first-quarter earnings for 2025, reporting a net profit of 3,616 billion New Taiwan dollars. This figure exceeds market forecasts of 3,467.6 billion New Taiwan dollars, with a gross margin of 58.8%, which is also higher than the estimated 58.1%. The company's revenue for the quarter reached 8,392.54 billion New Taiwan dollars, reflecting a 41.6% year-over-year increase. The net profit saw a substantial rise of 60.3% compared to the same period last year.

The strong financial performance can be attributed to the high demand for advanced semiconductor technologies. TSMC's 3-nanometer technology accounted for 22% of its total wafer revenue, while 5-nanometer technology contributed 36%, and 7-nanometer technology made up 15%. Advanced technologies, including 7-nanometer and more advanced processes, collectively accounted for 73% of the total wafer revenue. This underscores the company's dominance in cutting-edge semiconductor manufacturing.

TSMC's management expects the second quarter to be bolstered by strong demand for its industry-leading 3-nanometer and 5-nanometer technologies, with revenue projected to be between 284 billion and 292 billion U.S. dollars. The company also plans to commence mass production of 2-nanometer chips in the second half of this year, with approximately 30% of the 2-nanometer capacity expected to be located in Arizona. The construction of the second fab in Arizona is complete, and efforts are underway to accelerate the ramp-up of production capacity. The third fab in Arizona is scheduled to begin operations later this year.

Regarding potential impacts from tariffs, TSMC has stated that it is closely monitoring any potential effects. Despite the possibility of tariffs, the company remains committed to its budget expectations. Additionally, expansion plans for semiconductor fabs in Japan and Europe are proceeding without delay.