Taiwan Semiconductor Manufacturing Co. reported record first-quarter profit on strong AI-chip demand, while warning that war-related supply-chain costs could pressure margins.
Taiwan Semiconductor Manufacturing Co. reported record first-quarter 2026 profit on Thursday, extending a run of strong results powered by demand for AI chips.
The world’s largest contract chipmaker said net profit rose 58.3% from a year earlier to NT$572.5 billion. Revenue for the quarter rose 8.4% from the previous quarter to US$35.9 billion.
TSMC said demand tied to artificial intelligence remains extremely robust. It also projected second-quarter revenue of US$39 billion to US$40.2 billion.
The company warned, however, that war-related supply-chain costs linked to the conflict in the Middle East could weigh on profitability. TSMC said it does not expect any near-term operational disruption.
Investors are also watching how the company manages its spending plans. TSMC said 2026 capital spending is now expected toward the higher end of its US$52 billion to US$56 billion range.
The results came after the company’s first-quarter earnings conference on April 16. The report underscores how AI demand continues to support the semiconductor industry even as geopolitical risks complicate costs and logistics.
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