TSMC Expected to Post Fourth Consecutive Quarter of Record Profit Amid Persistent AI Demand

TSMC Set to Notch Record Earnings with 50% Surge in Net Profit

TAIPEI, April 13 (Reuters) - Taiwan Semiconductor Manufacturing Co (TSMC), the world's largest manufacturer of advanced artificial intelligence chips, is expected to report a fourth consecutive quarter of record earnings with a 50% surge in net profit for January-March. The company's booming demand for AI infrastructure is driving its success, with analysts saying that demand for TSMC's 3-nanometre technology to produce AI chips and its advanced packaging technology continues to outstrip the firm's current production capacity.

As Asia's most valuable company, TSMC is a key supplier to Nvidia and Apple. Its market capitalisation is now nearly double that of South Korean rival Samsung Electronics 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. This would mark the company's highest-ever quarterly net income and its ninth consecutive quarter of profit growth.

TSMC posted a 35% year-on-year rise in first-quarter revenue, ahead of market forecasts. Looking ahead, analysts expect higher quarter-on-quarter revenue growth guidance for the second quarter of 2026, driven by sustained AI demand and advanced-node leadership. 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.

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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.

An earnings call at which TSMC will provide second-quarter and updated full-year guidance is scheduled for 0600 GMT on Thursday. 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.