Taiwan Semiconductor Manufacturing Company (TSMC) today published its consolidated financial results for the first quarter of fiscal year 2025. The world’s largest contract chip maker listed a record 13.7% sequential jump in revenue and 9.25% leap in net income. Based in Taiwan, TSMC’s revenue for November soared 41.6% year-on-year, to NT$360.7 billion (€9.77 billion). The numbers showed a record 3.4% drop from the previous quarter.
In March, TSMC came in for bipartisan praise after announcing ambitious plans to expand its manufacturing operations in the United States. They are determined to invest a cumulative $160 billion into the country. This will be a powerful expansion into one of its most strategic markets. It aims to lower exposure to risks stemming from possible tariff effects. TSMC’s mood seems to be buoyant on its results. Their forward revenue guidance for the next second quarter lies between US$28.4 billion and US$29.2 billion (€25 billion and €25.67 billion).
Despite the chip downturn, TSMC’s smartphone business remains the biggest single slice of TSMC’s revenue pie, making up 28% of earnings. Despite ongoing concerns surrounding tariff threats, TSMC has reported no observable changes in customer behavior, which includes major clients such as Apple and Nvidia.
“While we have not seen any changes in our customers’ behaviour so far, uncertainties and risks from the potential impact from tariff policies exist,” – Wendell Huang, Senior VP and Chief Financial Officer of TSMC.
That hasn’t stopped TSMC’s revenue from skyrocketing. At the same time, their net income has more than doubled, up over 60% from this time last year. Even with these strong results, TSMC’s stock has been in the midst of a collapse of more than 20% on the year. Indeed, that was the quick positive reaction of the stock in pre-market trading in the US after the announcement of their quarterly financial results.
Ben Barringer, a global technology analyst at Quilter Cheviot, lauded TSMC for its fortitude. The company’s value remains even as the entire semiconductor industry faces seemingly existential crises. He realized that this investment in the US by the company would go a long way toward easing concerns over the possibility of tariffs.
“For TSMC it is very much a case of keep calm and carry on. Its latest set of figures highlight a very resilient business in the face of significant tariff threats for the semiconductor industry,” – Ben Barringer.
No matter the obstacles, TSMC still intends to focus on nurturing goodwill with its customers. One of TSMC’s other major customers, Nvidia, recently dropped an earth-shattering bombshell. Their intended writedown on inventory due to US export restrictions amounts to $5.5 billion (€4.84 billion). As previously mentioned, such developments only highlight the challenges companies continue to face in the semiconductor sector.
“One thing that could come to help it [TSMC] in the near-term, too, is the fact it continues to pump money into the US,” – Ben Barringer.
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