TSMC Q1 Revenue Hits NT$839.25B, Up 41.6% YoY

On April 10, TSMC announced its revenue results for March 2025, reporting consolidated revenue of NT$285.957 billion (approx. USD 8.72 billion), marking a 10.0% month-over-month increase and a significant 46.5% surge year-over-year. For the first quarter of 2025, total consolidated revenue reached NT$839.254 billion (approx. RMB 187.5 billion), up 41.6% compared to the same period in 2024.

TSMC had previously forecasted its Q1 2025 revenue to range between USD 25 billion and USD 25.8 billion, assuming an exchange rate of 1 USD = NT$32.8. The reported figure aligns well with market expectations, as the midpoint of the forecast was NT$833.12 billion.

Chairman and CEO C.C. Wei stated that inventory levels across the semiconductor industry have improved compared to 2024, with the overall market value expected to grow by approximately 10% in 2025. TSMC anticipates a robust year, projecting its revenue in USD to grow by 24% to 26%, outperforming the industry average. The company maintains its long-term target of nearly 20% compound annual growth rate (CAGR) over the next five years.

AI continues to be a major growth driver for TSMC. In 2024, AI-related revenue nearly tripled, accounting for 14–16% of the company's total revenue. For 2025, TSMC expects this segment to double again, projecting a CAGR of 44–46% from 2024 to 2029. This explosive demand is fueling growth in its High-Performance Computing (HPC) platform and overall business performance.

To meet the rising demand from 5G, AI, and HPC applications, TSMC plans to allocate between USD 38 billion and USD 42 billion in capital expenditures for 2025. Around 70% will be invested in advanced process technologies, 10–20% in specialty technologies, and the remaining 10–20% in advanced packaging, testing, photomask production, and other areas.

In March, C.C. Wei announced in the U.S. an additional four-year investment plan totaling USD 100 billion. The expansion includes the construction of three advanced semiconductor fabs, two advanced packaging facilities, and a major R&D center. With this new commitment, TSMC's total investment in the U.S. will rise to an estimated USD 165 billion (approx. NT$5.48 trillion), aimed at supporting increasing market demand.

TSMC will hold its Q1 2025 earnings conference on April 17. Key topics of interest are expected to include its expanded U.S. investments, developments in the AI market, and the potential impact of future U.S. tariff policies.