Profit and Sales Increase for Five Consecutive Quarters
The global semiconductor foundry giant, Taiwan's TSMC, saw its net profit for the first quarter of this year surge by 60.3% compared to the same period last year. This was thanks to a 41.6% increase in total sales during the same period, driven by strong sales of cutting-edge semiconductors.
TSMC announced on the 17th that its sales for the first quarter of 2025, from January to March, rose 41.6% year-on-year to 839.2 billion Taiwan dollars (approximately 36.6 trillion KRW), and net profit increased by 60.3% to 361.5 billion Taiwan dollars (approximately 15.8 trillion KRW). Both figures represent record highs for the same quarter. Sales and net profit have both increased for five consecutive quarters.
TSMC explained that the increase in profit and sales was due to strong sales of 3 to 5 nanometer (one billionth of a meter) chips. TSMC, holding about 60% market share in the foundry market, supplies semiconductors to major companies such as Apple and Nvidia. It especially holds a near-monopoly on semiconductor production for artificial intelligence (AI) applications.
However, a potential future variable is the semiconductor tariff sanctions imposed by U.S. President Donald Trump. Japan's Nihon Keizai Shimbun (Nikkei) noted, "Smartphones, which contain many semiconductors, may also be included in the targeted items, potentially affecting semiconductor demand." However, it added, "In the short term, there may be increased pre-order demand from customers trying to stockpile inventory before tariffs are implemented." Currently, about 70% of TSMC's sales are concentrated among North American customers such as Apple and Nvidia.
In line with the U.S. policy to strengthen semiconductor dominance, TSMC is also seeking breakthroughs by establishing production bases in the United States. While TSMC has produced its most advanced products in Taiwan until now, its first overseas cutting-edge factory in Arizona, USA, began mass production in October last year. Recently, it also announced plans to invest an additional 100 billion dollars (approximately 141 trillion KRW) in the U.S.
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