Taiwanese chip giant TSMC, the world’s largest producer of advanced semiconductors for AI applications, reported record profits in the first quarter of 2026. The company, a key customer of Dutch chip‑equipment maker ASML, appears largely unaffected by the conflict in the Middle East, which has not dampened global spending on artificial intelligence.
TSMC, which manufactures chips for major clients including Nvidia and Apple, saw net profit jump by nearly 60 percent to 572.5 billion Taiwanese dollars (more than €15 billion) in the first three months of the year. The result exceeded analysts’ expectations. Earlier this month, the company had already reported stronger‑than‑expected revenue growth of 35 percent for the quarter.
The record performance may ease concerns that a prolonged Middle East war could weaken demand for energy‑intensive AI data centres or consumer devices such as Apple’s iPhone. ASML noted on Wednesday that demand for chips continues to outstrip what manufacturers can supply.
Safety Stock and Outlook
TSMC also raised its full‑year revenue forecast and now expects more than 30 percent growth in 2026. The company’s board signalled confidence in the broader economic outlook by indicating that capital expenditures will likely reach the upper end of its previously announced range of up to $56 billion.
The company does not expect the conflict in the Middle East to disrupt supplies of key chip‑making materials such as helium and hydrogen in the short term.
Helium is essential for semiconductor production, and Qatar, affected by the regional conflict, is one of the few major producers. However, CFO Wendell Huang said TSMC works with multiple suppliers across different regions and has built up a safety stock to mitigate risks.
@anp | NEWSBRAINPORT
