TSMC, First-quarter net profit surged 60%...Pre-stockpiling before tariff bomb

Despite Concerns Over Tariffs, TSMC Achieves A Surge In Sales (Source: Reuters)

The World's Largest Foundry Company TSMC Recorded Better-Than-Expected Results Despite U.S. Tariff Pressure And Global Trade Uncertainty. According To The 2025 First Quarter Results Announced On The 17th, TSMC Achieved A Net Profit Of 361.6 Billion Taiwan Dollars (About 15.78 Trillion Won), Up 60% From The Same Period Last Year, Which Greatly Exceeded Bloomberg's Estimate Of 346.8 Billion Taiwan Dollars. Revenue Increased By Nearly 42% To 839.3 Billion Taiwan Dollars (About 36.67 Trillion Won).

The Key Factor In The Performance Increase Is The Sudden Surge In High-Performance Semiconductor Orders Due To Increased AI Demand. In Particular, Products Applying 3-Nanometer Process Technology Accounted For 22% Of Total Sales, And Advanced Technology Products Below 7 Nanometers Accounted For 73%. CFO Wendell Huang Explained, "Demand For Semiconductors For AI Accelerators Was Strong Throughout The Quarter."

Global Market Uncertainty Also Became The Background For The Good Results. Bloomberg Analyzed, "Amid Trade Anxiety Triggered By President Trump's Reciprocal Tariff Policy, U.S. Companies Moved To Secure Semiconductor Inventory, Which Positively Affected TSMC's Performance."

However, Stock Prices Showed A Pattern Opposite To The Performance. With Continued Vigilance Against Tariff Policy, TSMC's Stock Price Has Fallen About 21% This Year. The U.S. Government's AI Semiconductor Export Control On China Is Also A Burden. In Fact, The Percentage Of Sales In The Chinese Market Fell From 9% A Year Ago To 7% This Quarter, While The North American Sales Ratio Increased From 69% To 77% In The Same Period.

CEO Wei Zhejia Gave An Optimistic Outlook, Saying In A Conference Call After The Performance Announcement, "We Are Aware Of The Impact Of Tariff Policy, And Although Uncertainty Surely Exists, There Has Been No Significant Change In The Order Flow From Customers." He Also Predicted That "AI-Related Demand Will Continue For The Time Being," Anticipating That AI Semiconductor Sales Will More Than Double This Year.

Meanwhile, Semiconductor Equipment Companies Such As ASML Are More Directly Affected By The U.S. Tariff Policy. ASML's Order Volume This Quarter Was Significantly Lower Than Market Projections At 3.94 Billion Euros, Showing A Decline In Orders For High-Price Equipment, And CEO Christophe Fouché Stated, "Tariff Risks Are Negatively Impacting Equipment Demand."

TSMC Also Released Its Second Quarter Revenue Forecast Along With The Performance Announcement That Day. The Company Presented A Range Of 28.4 Billion To 29.2 Billion Dollars, Representing An Approximately 38% Increase From The Same Period Last Year. Annually, Revenue Is Expected To Increase By About 25%. Despite Ongoing Uncertainty, TSMC Plans To Continue Its Growth Based On Its Technological Competence And Customer Trust.