April 10 - Taiwan Semiconductor Manufacturing (TSM, Financial) posted a 42% year-on-year increase in first-quarter revenue, boosted by accelerating demand for AI servers and smartphones as buyers moved to front-load orders before fresh U.S. tariffs took effect.
Revenue for the quarter reached NT$839.25 billion (US$25.6 billion), outpacing consensus estimates of NT$830.5 billion. The company said March revenue alone rose 46% from a year earlier to NT$285.96 billion as electronics makers, including Apple (AAPL), built inventory in U.S. warehouses to hedge against potential supply chain disruptions.
The results arrived just days after the U.S. imposed new tariffs on Chinese tech goods on April 9, raising concerns that higher costs could dampen demand for consumer electronics. Over the weekend, U.S. retailers reported a surge in iPhone purchases as customers anticipated possible price hikes.
Last month, TSMC CEO C.C. Wei and U.S. President Donald Trump jointly presented a US$100 billion expansion in U.S. chipmaking facilities. Trump linked the investment to the rising pressure from tariffs, aligning with efforts to shift semiconductor production stateside.
TSMC, whose clients also include Nvidia (NVDA, Financial) and AMD (AMD, Financial), is scheduled to release full Q1 earnings on April 17. Investors will monitor for updates to its sales and capital expenditure outlook amid growing uncertainty in global chip demand.
