TSMC Q1: Net Profit Up 8.9%, $18.87B Revenue, 53.1% Gross Margin on AI Demand

Apr 18, 2024, 06:05 AM

Taiwan Semiconductor Manufacturing Company (TSMC) reported a significant increase in its first-quarter profits, largely driven by the strong demand for AI chips. The company's net profit rose by 8.9% year-on-year to NT$225.5 billion (approximately US$7.17 billion), surpassing the consensus estimate of NT$217.2 billion. This marks TSMC's first profit growth in a year, with a 9% rise in net income. Despite a 3.8% decrease in revenue to US$18.87 billion, the figures still exceeded expectations. Notably, the company's gross margin stood at 53.1%, slightly above the estimated 53.0%. TSMC's revenue increased by 17% year-over-year, operating margin was reported at 42%, capital expenditures were $5.8 billion, and earnings per American depositary receipt were $1.38, indicating a robust performance attributed to the surging demand for advanced semiconductors used in various AI applications.