tsmc surges: q1 2025 revenue jumps 41.6%

2025-04-26 tsmc

Hsinchu, Saturday, 26 April 2025.
taiwan semiconductor manufacturing (tsmc) has demonstrated its dominance in the semiconductor industry. the company reported a staggering 41.6% increase in revenue for q1 2025, reaching 839.25 billion twd. this growth underscores tsmc’s crucial role in meeting the rising demand for advanced chips, particularly those used in ai. tsmc’s success has a ripple effect, boosting investor confidence and positively influencing the company’s stock value. with plans to expand production in arizona and taiwan, tsmc is solidifying its position as a key player in the global tech landscape.

financial performance

tsmc’s q1 2025 revenue reached 839.25 billion twd, a 41.61% increase compared to the same period last year [1]. this surge brought the company’s revenue for the last twelve months to 3.14 trillion twd, marking a 39.86% year-over-year increase [1]. in q1 2025, net income reached $10.997 billion usd [2]. tsmc’s strong performance is attributed to high demand for ai chips and full capacity utilization at its advanced 3nm and 5nm nodes [4]. effective cost management also contributed to exceeding market expectations [4].

market leadership and expansion

tsmc’s high-performance computing (hpc) business accounted for 59% of its q1 revenue, with 3nm technology contributing 22% of total wafer revenue [2]. tsmc is expanding its manufacturing footprint, planning to build 11 wafer manufacturing fabs and four advanced packaging facilities in taiwan [2]. the company also intends to construct three new fabrication plants, two advanced packaging facilities, and a research and development center in arizona [2]. these expansions aim to support strong customer demand and maintain market leadership [2].

geopolitical and competitive landscape

the us government informed nvidia on april 9, 2025, that a license is required to export its h20 gpu to china, impacting sales and potentially affecting tsmc [2]. despite these restrictions, tsmc anticipates full-year 2025 revenue to increase by close to the mid-20s percentage in us dollar terms [2]. intel ceo lip-bu tan met with tsmc ceo c.c. wei to discuss potential collaborations, highlighting the complex interplay between competition and partnership in the semiconductor industry [3][7]. intel faces capacity shortages for its ‘intel 7’ process node [7].

stock implications and future outlook

tsmc’s stock performance has not fully reflected its strong q1 earnings, potentially due to concerns about a growth slowdown and geopolitical factors [8]. despite solid earnings, the stock hasn’t been enthusiastically received by investors [8]. tsmc expects q2 2025 sales to be between $28.4 billion and $29.2 billion usd [2]. the company reaffirms its expectation that revenue from ai accelerators will double in 2025 [2]. production of tsmc’s a14 chip technology is slated to begin in 2028 [4].

Bronnen

Revenue Growth Semiconductor Manufacturing