TSMC sales beat estimates as AI demand soars ahead of US tariffs
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TSMC remains the world’s leader in the production of advanced semiconductors used for artificial intelligence and smartphones.
PHOTO: REUTERS
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TAIPEI – Taiwan Semiconductor Manufacturing Co’s (TSMC) quarterly revenue rose by larger than anticipated at 42 per cent, reflecting strengthening demand for AI servers and smartphones before US tariffs kicked in.
It marked TSMC’s fastest pace of growth since 2022. Electronics manufacturers had stockpiled goods in US warehouses in anticipation of potential trade and shipping disruptions.
The main chipmaker for Apple and Nvidia reported revenue of NT$839.25 billion (S$34.2 billion) in the first three months of 2025. Analysts on average expected roughly NT$830.5 billion.
The company reports full quarterly earnings next week.
Its results coincide with growing concerns about how tariffs may disrupt demand for electronics such as iPhones. Over the weekend, Americans rushed to pick up Apple’s marquee device, fearing it may raise prices to cover the additional cost.
In March, TSMC chief executive officer C.C. Wei and US President Donald Trump jointly announced an additional US$100 billion (S$134 billion) investment in US chipmaking, boosting the White House’s goal of bringing manufacturing back home.
Mr Trump credited rising tariffs for the extra outlay.
More broadly, there are signs that the pace of spending on data centres and artificial intelligence (AI) chips may be slowing somewhat. Microsoft, for one, has pulled back on projects around the world, suggesting it is rethinking plans.
Some analysts warned that TSMC might have to cut its full-year revenue target for growth in the mid-20 per cent range, reflecting global uncertainty and the potential hit to economies.
Its outlook is overshadowed also by Mr Trump’s threats to slap tariffs on semiconductor imports, although it is unclear when or whether that may happen.
Bloomberg Intelligence analyst Charles Shum said: “Investors will be focused on a potential downward revision to the full-year sales target and capital plans, reflecting the weaker outlook on global chip demand amid uncertainty following new US tariffs imposed on April 9.”
Still, TSMC remains the world’s leader in the production of advanced semiconductors used for AI and smartphones.
That could cushion the impact of tariffs or trade disruptions.
Major tech companies including Alphabet and Meta Platforms have not revised plans to invest tens of billions of dollars in AI or talked about scaling back. Amazon.com alone is aiming to spend US$100 billion on AI in 2025. BLOOMBERG
