The world’s largest contract chip maker TSMC sees no change in clients’ behaviour, together with Apple and Nvidia, for now, regardless of fears that tariffs will hit the sector exhausting.
The Taiwan-based firm launched its first quarterly outcomes and reported internet revenue of NT$360.7bn (€9.77bn), up by slightly greater than 60% year-on-year, beating estimates.
Income elevated by 41.6% year-on-year within the first three months of 2025, however dropped by 3.4% in comparison with the earlier quarter, because of the seasonally weak gross sales within the smartphone division, which offers 28% of income.
“Our enterprise within the first quarter was impacted by smartphone seasonality, partially offset by continued progress in AI-related demand.” Wendell Huang, Senior VP and Chief Monetary Officer of TSMC, mentioned.
The sector is going through uncertainty over potential tariffs that would severely influence the semiconductor trade.
US President Donald Trump beforehand mentioned that Taiwan had taken away the US chip enterprise and that he needed it again.
In March, TSMC introduced plans to broaden its manufacturing within the US, pledging to spend a complete of $160bn within the States.
“One factor that would come to assist it [TSMC] within the near-term, too, is the actual fact it continues to pump cash into the US. It is going to proceed to emphasize this truth to President Trump because it, and the entire trade, seeks out a extra beneficial tariff regime in comparison with client items,” Ben Barringer, international expertise analyst at Quilter Cheviot, mentioned.
Whereas traders are nervously watching the White Home because it spreads out its plans about semiconductor tariffs, US export restrictions are already impacting particular AI chips, which can pressure TSMC’s second greatest buyer, Nvidia, to write down off $5.5bn (€4.84bn) in stock.
Regardless of these components clouding TSMC’s prospects, the corporate maintained its income progress outlook, anticipating sturdy demand within the second quarter; income is predicted to be between US$28.4bn and US$29.2bn (€25bn and €25.67bn); primarily based on the trade fee assumption of $1 to NT$32.5.
“Whereas we have now not seen any adjustments in our clients’ behaviour up to now, uncertainties and dangers from the potential influence from tariff insurance policies exist,” Huang mentioned.
“For TSMC it is rather a lot a case of maintain calm and stick with it. Its newest set of figures spotlight a really resilient enterprise within the face of serious tariff threats for the semiconductor trade,” Barringer mentioned.
The corporate’s shares have been up in pre-market commerce within the US however general it has misplaced greater than 20% year-to-date.
“TSMC’s shares have de-rated considerably over the previous few months and is now beginning to look low-cost given this set of outcomes,” Barringer mentioned, including “It stays a world class firm and inside the semiconductor trade, we will see it bouncing again strongly as soon as the financial surroundings is clearer.”