“First Quarter Profits Rise by 9% as TSMC Exceeds Expectations”

TSMC Exceeds Expectations with 9% Surge in First Quarter Profits

Taiwanese semiconductor giant, TSMC, has reported a remarkable 9% increase in net profit for the first quarter, surpassing industry estimates. This surge in profits has been attributed to the high demand for semiconductors, particularly in artificial intelligence applications.

As the world’s largest contract chipmaker and a key supplier to tech giants such as Apple Inc and Nvidia, TSMC has been able to capitalize on the growing adoption of AI technology. This has allowed the company to navigate the slowdown in electronics demand caused by the pandemic and push its stock to record levels.

In the first quarter of the year, TSMC’s net profit rose to T5.5 billion (.98 billion), up from T6.9 billion the previous year. This surpassed the market’s expectations which were set at T8.1 billion. The company also reported a 13% year-on-year increase in revenue to .87 billion, exceeding its own projections.

Moreover, TSMC revealed that its capital expenditure for the first quarter was .77 billion, marking a significant increase from the previous quarter. The company’s shares have seen a considerable 36% surge since the beginning of the year.

TSMC is scheduled to announce updates on its forecasts for the current quarter and the rest of the year during an upcoming earnings call. This will include details on capital expenditure, which is expected to range between billion and billion for the year.

Despite a mixed performance in the industry, with ASML reporting weaker-than-expected new bookings, TSMC’s resilience in the face of challenges has set it apart. Sales to China have also remained robust despite restrictions imposed by the United States.

With its stellar performance in the first quarter, TSMC continues to lead the semiconductor industry and set new benchmarks for success.