TSMC reports Q1 revenue up 35.1% YoY to ~$35B, net income up 58.3% YoY to ~$18B, both above est., and says 7nm or smaller chips were ~74% of its wafer revenue

Taiwan Semiconductor Manufacturing Company on Thursday reported a 58% increase in first-quarter profit, beating estimates and hitting …

CNBC 2026-04-16 Dylan Butts

Context & Ripple Effects

TSMC’s earnings trajectory had already strengthened from the more modest first-quarter growth reported in 2024, with later 2024 coverage tying accelerating results to demand for advanced AI chips. This quarter adds a sharper mix signal: 7nm-and-below processes supplied nearly three-quarters of wafer revenue.

The result also precedes a further reported acceleration in Q2, alongside higher 2026 capital-spending and revenue-growth projections. Together, the coverage frames TSMC’s growth as an advanced-node-led capacity and investment cycle rather than a broad recovery across all chip categories.

First-order effects

TSMC enters 2026 with earnings and revenue above expectations, while advanced processes account for the dominant share of its wafer sales; its near-term investment case becomes more dependent on sustained leading-edge demand.
The company has raised its 2026 capex range to $60B-$64B and lifted its revenue-growth outlook, directing more resources toward meeting the AI-driven demand it cites.

Second-order effects

Customers requiring leading-edge production face a supplier whose advanced-node capacity is becoming still more central, while TSMC’s equipment and construction ecosystem gains from the higher capex plan.
The concentration of wafer revenue in sub-7nm chips strengthens TSMC’s leverage in negotiations with key equipment vendors, consistent with reports that it is resisting ASML price increases.

Third-order effects

If advanced-node demand continues to outpace available capacity, semiconductor supply constraints will increasingly be defined by leading-edge fabrication rather than the broader chip cycle.
The pattern points toward a more capital-intensive, concentrated foundry market, in which sustained AI demand and long build-out times make capacity planning a strategic differentiator.

The trend: AI-led demand is shifting semiconductor growth and investment toward scarce leading-edge foundry capacity, reinforcing the capacity lag between demand signals and new production.

Discussion

r/technology r on reddit
TSMC first-quarter profit rises 58%, beats estimates as AI demand fuels record run
@jukan05 Jukan on x
I heard some idiots are selling because they think TSMC's margins peaked in Q1.
@teslayoda Tesla Yoda on x
TSMC CEO, C.C. Wei: “2nm (N2) entered volume production with good yield.” “N2 will be a large and long lasting node.” “Global 3nm (N3) node update: we are stepping up our CAPEX investment to increase our capacity. We are adding a 3nm fab in Taiwan. In Arizona, we will use 3nm in
@tculpan Tim Culpan on x
Three facts worth storing in memory: -Taiwan's stock market is now bigger than the UK's -Taiwan is on track to be a larger source of US imports than China. -Eight of the world's ten largest companies rely on Taiwanese (#9 & #10 are TSMC & Saudi Aramco).
@thetranscript_ @thetranscript_ on x
TSMC Q1 2026 results [NTD, YoY]: —Net revenue: +35.1% to 1,134.1B —Operating income: +61.9% to 658.97B —Operating margin: +9.6pp to 58.1% —Net profit: +58.3% to 572.48B —Net profit margin: +7.4pp to 50.5% —EPS: +58.3% to NTD 22.08 $TSM $TSMC [image]
@dnystedt Dan Nystedt on x
TSMC's massive 2026 capex spend could rise to US$70 billion this year, market seers opine, while the chip giant's current guide of US$52-$56B is already enough to draw big investments to Taiwan by equipment and materials suppliers, media report. Japan's JSR joined US equipment
@tculpan Tim Culpan on x
Just in: TSMC 1Q 2026 Earnings Record results across the board. Net Income +58% YoY -Revenue NT$1.13T —US$35.9 b v US$34.6-35.8b Operating Income: NT$659b Net Income: NT$572b -GM: 66.2% v 63-65% Guidance -OM: 58.1% v 54-56% Guidance
@skundojjala Sravan Kundojjala on x
TSMC 1Q26: Revenue, GM and OPM all above high-end guidance. 1Q26 vs 1Q25: Revenue: $35.898B (+6% q/q & +41% y/y) Gross Margin: 66.2% (58.8%) Operating Margin: 58.1% (48.5%) Capex for CY25: $11.1B (+10%) Wafer Shipments: 4.174M (+28%) Wafer ASP: [image]
@jukan05 Jukan on x
▶ TSMC 2Q26 Guidance - Revenue: US$39.0-40.2bnvs. consensus: US$38.1bn (midpoint +4% above) - GPM: 65.5%-67.5%vs. consensus: 64.1% (midpoint +2.4ppt above) - OPM: 56.5%-58.5%vs. consensus: 55.2% (midpoint +2.3ppt above)
@teslayoda Tesla Yoda on x
TSMC CEO, C.C. Wei: “AI demand continues to be extremely robust.” “Our customers and customers' customer continue to gives us strong signal and outlook”. “We maintain strong confidence of our revenue for 2026 to grow by 30%+ in US dollar terms.”
Alex Joseph Varghese, Ph.D. Alex Joseph Varghese, Ph.D. on linkedin
$TSM Q1 26 Earnings — • Sales $35.9B vs Est. $35.5B — • EPS $3.49 vs Est. $3.38 — • Gross margin 66% vs Est. 65% …
TSMC TSMC on linkedin
TSMC (TWSE: 2330, NYSE: TSM) today announced consolidated revenue of NT$1,134.10 billion, net income of NT$572.48 billion …
Peter Elstrom Peter Elstrom on linkedin
New: There was plenty of skepticism when Musk first announced plans for his Terafab, but Bloomberg has found he's moving quickly to line up suppliers …

Chronicles