TSMC CEO C.C. Wei says TSMC checked with customers about AI demand and was reassured that it was still strong amid the Iran war, as it raises revenue forecasts

Taiwan company expects revenue to grow by more than 30% and doesn't see material disruptions to supply chain

Wall Street Journal 2026-04-16

Context & Ripple Effects

TSMC’s recent results had already shown AI-led growth persisting through successive quarters: it raised 2025 guidance after strong Q2 and Q3 performance, then reported Q1 revenue above expectations as the Middle East war began. Wei had also previously identified geopolitical, tariff, and currency risks while maintaining a record-profit outlook.

The customer check and higher forecast extend that record: TSMC is signaling that its order outlook has not materially weakened and that it currently sees no supply-chain interruption severe enough to alter its plans.

First-order effects

TSMC raises its revenue outlook to growth of more than 30%, reflecting customer confirmation that AI chip demand remains strong.
The company’s customers and production planning face no indicated material supply-chain disruption from the Iran war at present, preserving TSMC’s near-term delivery outlook.

Second-order effects

A maintained TSMC growth outlook reinforces demand visibility for the broader AI-chip supply chain, rather than indicating an immediate pullback in orders because of the conflict.
Rival chip manufacturers and AI infrastructure suppliers must continue planning around sustained demand rather than expecting geopolitical disruption to ease competition for advanced production capacity.

Third-order effects

If customer demand and supply continuity continue to hold through geopolitical shocks, AI infrastructure spending becomes less tied to short-term macro disruption and more constrained by the capacity needed to serve it.
The pattern strengthens TSMC’s role as a central transmission point for AI demand: its guidance and operational continuity increasingly shape expectations across the semiconductor ecosystem.

The trend: This is another data point in the AI infrastructure supercycle, in which sustained demand for advanced compute is proving resilient even as geopolitical risk complicates supply planning.

Discussion

r/technology r on reddit
TSMC first-quarter profit rises 58%, beats estimates as AI demand fuels record run
Peter Elstrom Peter Elstrom on linkedin
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@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
@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]
@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)
@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: “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.”
@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).
@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
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 …

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