The world’s largest contract chip maker TSMC sees no change in prospects’ behaviour, together with Apple and Nvidia, for now, regardless of fears that tariffs will hit the sector exhausting.
The Taiwan-based firm launched its first quarterly outcomes and reported web revenue of NT$360.7bn (€9.77bn), up by a bit greater than 60% year-on-year, beating estimates.
Income elevated by 41.6% year-on-year within the first three months of 2025, however dropped by 3.4% in comparison with the earlier quarter, because of the seasonally weak gross sales within the smartphone division, which supplies 28% of income.
“Our enterprise within the first quarter was impacted by smartphone seasonality, partially offset by continued development in AI-related demand.” Wendell Huang, Senior VP and Chief Monetary Officer of TSMC, stated.
The sector is going through uncertainty over potential tariffs that would severely influence the semiconductor trade.
US President Donald Trump beforehand stated that Taiwan had taken away the US chip enterprise and that he needed it again.
In March, TSMC introduced plans to broaden its manufacturing within the US, pledging to spend a complete of $160bn within the States.
“One factor that would come to assist it [TSMC] within the near-term, too, is the actual fact it continues to pump cash into the US. It should proceed to emphasize this reality to President Trump because it, and the entire trade, seeks out a extra beneficial tariff regime in comparison with shopper items,” Ben Barringer, world expertise analyst at Quilter Cheviot, stated.
Whereas traders are nervously watching the White Home because it spreads out its plans about semiconductor tariffs, US export restrictions are already impacting particular AI chips, which is able to pressure TSMC’s second greatest buyer, Nvidia, to jot down off $5.5bn (€4.84bn) in stock.
Regardless of these components clouding TSMC’s prospects, the corporate maintained its income development outlook, anticipating robust demand within the second quarter; income is predicted to be between US$28.4bn and US$29.2bn (€25bn and €25.67bn); based mostly on the change charge assumption of $1 to NT$32.5.
“Whereas now we have not seen any modifications in our prospects’ behaviour to date, uncertainties and dangers from the potential influence from tariff insurance policies exist,” Huang stated.
“For TSMC it is extremely a lot a case of hold calm and stick with it. Its newest set of figures spotlight a really resilient enterprise within the face of great tariff threats for the semiconductor trade,” Barringer stated.
The corporate’s shares had been up in pre-market commerce within the US however total it has misplaced greater than 20% year-to-date.
“TSMC’s shares have de-rated considerably over the previous few months and is now beginning to look low cost given this set of outcomes,” Barringer stated, including “It stays a world class firm and throughout the semiconductor trade, we are able to see it bouncing again strongly as soon as the financial setting is clearer.”
