TSMC Projects 5% Q1 Profit Growth Amid Strong AI Chip Demand

Taiwan Semiconductor Manufacturing Co. (TSMC) is expected to announce a 5% rise in first-quarter profit due to robust demand for advanced chips used in artificial intelligence (AI) applications, as reported by Reuters' Ben Blanchard and Faith Hung.

TSMC, the world's largest contract chipmaker servicing major clients like Apple and Nvidia, has witnessed a surge in AI-related chip demand, offsetting the slowdown in pandemic-led electronics demand. I Photo: TSMC

TSMC, the world's largest contract chipmaker servicing major clients like Apple and Nvidia, has witnessed a surge in AI-related chip demand, offsetting the slowdown in pandemic-led electronics demand.

The company's stock has soared to a record high on the back of this trend.

Analysts predict TSMC to report a net profit of T$217.2 billion ($6.71 billion) for the quarter ended March 31, up from T$206.9 billion in the same period last year. This positive outlook reflects the company's resilience amid evolving market conditions and its pivotal role in meeting the growing demand for AI-driven technologies.