TSMC's Q1 profit rises 9%, better than estimates

TAIPEI (Reuters) – Taiwanese chipmaker TSMC on Thursday reported a 9% rise in first-quarter net profit, beating market expectations as it rode a wave of demand for semiconductors used in artificial intelligence applications. Is.

Taiwan Semiconductor Manufacturing Co Ltd (TSMC), the world's largest contract chip maker and a major Apple Inc and Nvidia supplier, has benefited from a move towards AI that has helped it cope with a slump in electronics demand caused by the pandemic. Helped and boosted TSMC's stock. record high.

TSMC's January-March net profit rose to T$225.5 billion ($6.98 billion) from T$206.9 billion a year earlier.

The profit beat the T$218.1 billion LSEG SmartEstimate, which is based on analysts' forecasts that are consistently more accurate.

TSMC, Asia's most valuable listed company, said first-quarter revenue rose 13% year-on-year to $18.87 billion, better than the company's previous forecast of $18 billion to $18.8 billion. The company last week announced first-quarter revenue in Taiwan dollars, which stood at T$592.64 billion.

TSMC said capital spending in the first quarter was $5.77 billion, compared to $5.24 billion in the fourth quarter of 2023.

TSMC's Taipei-listed shares have gained 36% so far this year. The stock was flat against the benchmark index's 0.4% gain on Thursday ahead of the results.

The company will provide an update on its outlook for the current quarter and the rest of the year on an earnings call starting at 0600 GMT, including capital spending, previously reported to be in the range of $28 billion to $32 billion this year. up from $30.45 billion last year.

On Wednesday, ASML, the biggest supplier of equipment to computer chip makers such as TSMC, reported weaker-than-expected new bookings in the first quarter, although sales to China continued despite US-led sanctions.

($1 = 32.3190 Taiwan dollars)

(Reporting by Yimou Li and Faith Hung; Additional reporting by Ben Blanchard; Editing by Jamie Freed and Sri Navaratnam)

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