TSMC Beats Q1 Earnings on AI Chip Surge

Taiwan Semiconductor Manufacturing Co. reported robust first-quarter earnings on Thursday, surpassing analyst expectations amid surging demand for artificial intelligence chips. The Taiwan-based company, the world's largest contract chipmaker, posted revenue of 1.134 trillion new Taiwan dollars, equivalent to about 35 billion U.S. dollars, marking a 35 percent increase from the same period a year earlier. Net income rose 58 percent to 572.5 billion new Taiwan dollars, or roughly 18.2 billion U.S. dollars, extending a streak of double-digit profit growth for eight consecutive quarters.

The results were propelled by strong performance in high-performance computing, which includes AI and data center applications, accounting for 61 percent of total revenue. This segment saw a 20 percent sequential increase, driven by chips for AI systems supplied to customers such as Nvidia and Apple. Digital consumer electronics, covering devices like smart TVs and virtual reality headsets, contributed another key boost with 28 percent quarter-over-quarter growth. Advanced manufacturing processes, those at seven nanometers or smaller, represented 74 percent of wafer revenue, with three-nanometer...