TSMC Reports Q1 Net Profit of 9.5 Trillion KRW, Exceeding Expectations

TSMC, the world's largest foundry (semiconductor contract manufacturer), recorded a net profit of 9.5 trillion KRW in the first quarter, surpassing market expectations.

Bloomberg reported on the 18th (local time) that TSMC's first-quarter net profit increased by 9% year-on-year to $7 billion (approximately 9.5837 trillion KRW). This exceeded the market forecast (approximately 9.1336 trillion KRW).

[Image source=Reuters Yonhap News]

Revenue also showed growth. TSMC's first-quarter revenue rose 13% year-on-year to $18.87 billion, surpassing the previous expected range ($18 billion to $18.8 billion). The company expects second-quarter revenue to reach between $19.6 billion and $20.4 billion, a 30% increase compared to the same period last year.

This growth trend is interpreted as being driven by the boom in the artificial intelligence (AI) industry. The report analyzed, "TSMC's revenue growth suggests that demand for chips accelerating AI development has begun to offset the impact of the smartphone market downturn."

Earlier, TSMC announced in January that its AI segment revenue is growing at 50% annually. Some investors have expressed concerns that the current level of AI chip demand may not be sustainable in the long term. The report also noted that the market is wary of geopolitical uncertainties involving China in the Taiwan Strait.

Meanwhile, on the 17th, TSMC's stock price on the New York Stock Exchange closed at $139.03, down 0.55% from the previous session. It has risen 33% so far this year.