TSMC Posts Record 35% Revenue Jump as AI Chip Demand Holds Strong

Taiwan Semiconductor Manufacturing Company reported first-quarter 2026 revenue of approximately $35.7 billion on April 10, 2026. That is a 35% increase compared to the same period in 2025, and it beat analyst forecasts of around $35.4 billion.

March alone was TSMC's strongest month on record, with revenue rising 45.2% year-over-year and 30.7% from February.

The results confirm that AI chip demand has not slowed. TSMC is the world's largest contract chipmaker and one of the few companies capable of manufacturing the most advanced chips at the 3-nanometer level. Neither Intel nor Samsung can currently match its consistency and yields at that scale.

Key customers driving demand include Nvidia, whose AI accelerators power data centers and AI applications worldwide, and Apple, which uses TSMC to manufacture its M-series and A-series processors. Hyperscalers including Google, Amazon, Meta, and Microsoft are also spending heavily on AI infrastructure, pushing orders higher.

TSMC has raised prices for its most advanced chips, which analysts said was a significant factor in the revenue beat.

The strong results came despite the ongoing Iran war, which began in late February 2026. The conflict has disrupted global supply chains in other sectors but has not slowed AI chip orders.

TSMC plans capital expenditures of $52 billion to $56 billion for 2026, a 30% increase from 2025. The spending will expand 2-nanometer production in Taiwan, develop the A16 node, and build out its Arizona facilities.

The company will release its full first-quarter earnings report, including profit margins and capacity expansion plans, on April 16, 2026.