By Adam Clark
Taiwan Semiconductor Manufacturing is expected to report a sharp rise in quarterly profit as it rides the wave of demand for artificial-intelligence chips. But its heavy investment plans could send bigger ripples across the semiconductor sector.
Taiwan Semiconductor, or TSMC, will report earnings before the market open on Thursday. TSMC is expected to report a first-quarter net profit of 540.87 billion New Taiwan dollars ($17.11 billion), according to a FactSet poll of analysts' estimates, up from NT$360.73 billion for the same period a year earlier.
According to its monthly revenue figures, TSMC logged revenue of NT$1.13 trillion for the first quarter, up 35% from the same period in 2025.
TSMC previously forecast quarterly revenue in U.S. dollar terms to be between $34.6 billion and $35.8 billion. For the full year, TSMC executives have told analysts they expect roughly 30% revenue growth.
TSMC's capital expenditure forecast will be closely watched as the chip manufacturer races to keep up with soaring demand for processors. At its previous earnings report, the company said it would spend up to $56 billion on capital expenditures this year, up around 30% from 2025. Executives have also indicated that elevated capex could persist for the next three years.
Part of the reason for the high spending is its American expansion. TSMC has pledged a total of $165 billion in U.S. investment, including building three new chip plants.
TSMC's American depositary receipts were down 0.3% in morning trading Wednesday, but have more than doubled over the past 12 months.
Write to Adam Clark at adam.clark@barrons.com
This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
April 15, 2026 16:00 ET (20:00 GMT)
Copyright (c) 2026 Dow Jones & Company, Inc.
Comments