News
AI · Earnings · Semiconductors · Trade Policy
TSMC, the world's largest semiconductor foundry, reported preliminary Q1 2025 revenue of NT$839.25 billion, exceeding market expectations with a 42% year-on-year growth, driven by robust AI chip demand, while simultaneously navigating significant geopolitical trade tensions and US tariff threats.
TSMC, a key manufacturer for Apple, NVIDIA, Broadcom, and Qualcomm, expects net income to grow 57% year-on-year to NT$354 billion, matching Q4 2024's strong performance. The company's advanced 3nm and 5nm wafer technologies secure its 67% global semiconductor foundry market share, crucial for AI accelerators and data centers, according to TrendForce.
High-performance computing and smartphone chips constitute 88% of Q4 2024 revenue, with North American customers contributing 75% of total revenue. Investors will monitor 29% year-on-year R&D expense growth and Q2 2025 guidance.
US trade policies, including a recent 32% reciprocal tariff on Taiwan (briefly imposed then suspended) and a Trump administration probe into semiconductor imports, pose substantial risks. TSMC's $100 billion investment in US manufacturing and potential Intel joint venture aim to mitigate these geopolitical challenges.
Analysts maintain a bullish outlook, with an average one-year price target of $226.74, suggesting a 44% increase from the April 15, 2025 closing price of $157.33, according to LSEG Data & Analytics.
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