TSMC Reports Record 35.7 Billion Dollar Revenue in Q1 2026, Driven by AI Chip Demand

Taiwan Semiconductor Manufacturing Co. reported record revenue of $35.7 billion in the first quarter of 2026, a 35 percent jump from the same period a year earlier, driven by relentless demand for AI chips.

The results beat analyst forecasts of $35.4 billion. Revenue for March 2026 alone reached $13.8 billion, a 45.2 percent year-on-year increase and the strongest single month of the quarter.

TSMC fabricates roughly nine out of every ten advanced AI accelerators globally. Its major clients include Apple and Nvidia. Nvidia depends heavily on TSMC's advanced fabrication plants for its AI accelerators, and Apple uses TSMC for its custom M-series and A-series chips.

The company's 3-nanometer and 5-nanometer process technologies drove much of the growth. Technologies at 7nm and below collectively contributed 77 percent of revenue in the previous quarter, a trend expected to intensify as 2nm production ramps up.

TSMC is raising prices on leading-edge chips by 3 to 10 percent starting in 2026. Analysts forecast gross margins to stabilize around 64 percent for the year, up from 62.3 percent in late 2025.

Demand for TSMC's advanced-node output is roughly three times higher than current capacity. Lead times for advanced AI chips have stretched past 50 weeks. Nvidia has reportedly reserved more than 50 percent of TSMC's advanced packaging capacity for 2026 and 2027.

The company plans to spend $52 to $56 billion on capital expenditures in 2026, a 30 to 40 percent increase from 2025. About 70 to 80 percent of that budget goes to leading-edge process technologies.

TSMC's full Q1 earnings call is scheduled for April 16, where the company is expected to update its full-year guidance.