tsmc's q1 revenue rockets: inside the 46.5% surge

2025-04-10 tsmc

hsinchu, Thursday, 10 April 2025.
tsmc just announced a massive 46.5% year-over-year revenue jump for march 2025. This surge propelled q1 revenue to a record high. This financial upswing underscores tsmc’s strong manufacturing and key client relationships. Demand for ai chips is speculated to be the driving force behind these numbers. Analysts predict continued growth, estimating a 24% to 26% increase in dollar-denominated revenue for the year. Political factors could throw a wrench in the works. Despite these uncertainties, tsmc’s performance points to a bullish outlook.

revenue milestones

Taiwan Semiconductor Manufacturing Co. (TSMC) reported a consolidated revenue of 285.96 billion new Taiwan dollars for March [1]. This represents a 10% increase from February and a 46.5% increase compared to March of the previous year [1]. First-quarter revenue reached 839.25 billion new Taiwan dollars, a 41.6% increase from the same period last year, setting a new record [1]. These figures highlight TSMC’s dominant position in the semiconductor industry and its ability to capitalize on growing demand [1].

analyst perspectives and market resilience

Susquehanna analysts have reiterated an ‘outperform’ rating for TSMC, noting the company’s business is more resilient than anticipated [2]. Their analysis indicates stable wafer shipments and average selling prices (ASP) for TSMC [2]. Despite concerns over potential tariffs, the actual impact on TSMC might be limited, given that approximately 70% of its revenue comes from U.S. clients [2]. A portion of TSMC’s chip products may qualify for the ‘U.S. content value’ requirement, potentially lowering the overall tariff burden [2].

geopolitical challenges and tariff threats

TSMC faces increasing geopolitical pressures, particularly from the United States [3]. Former U.S. President Trump has stated he warned TSMC that a 100% tariff would be imposed if the company did not establish manufacturing facilities in the U.S. [3]. These comments underscore the U.S. government’s focus on incentivizing domestic chip production [3]. Separately, there are reports that TSMC may face a fine exceeding $1 billion for potentially violating export rules related to supplying chips to Huawei [7]. These factors introduce uncertainty into TSMC’s future financial outlook [alert! ‘geopolitical factors are subject to change’].

market capitalization and leadership

As of April 2025, TSMC’s market capitalization stands at 1.102 trillion Singapore dollars, making it the 11th most valuable company globally [8]. TSMC is the world’s largest independent contract manufacturer of semiconductor products [8]. It maintains key partnerships with major technology firms like Nvidia, Apple, Qualcomm, and AMD, manufacturing critical components for their products [2]. This central role in the global semiconductor supply chain provides a degree of stability despite existing geopolitical risks [2].

Bronnen

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