TSMC’s Q1 profit was up 58% YoY at $18.2 billion on Q1 revenue of $35.90 billion which was up 40.6% YoY and up 6.4% from Q4 2025.

Gross margin for Q1 was 66.2%, operating margin was 58.1%, and net profit margin was 50.5%.

In the first quarter, shipments of 3-nanometer accounted for 25% of total wafer revenue; 5-nanometer accounted for 36%; 7-nanometer accounted for 13%. Advanced technologies, defined as 7-nanometer and more advanced technologies, accounted for 74% of total wafer revenue.

TSMC Q1 profit up 58% YoY

“Our business in the first quarter was supported by strong demand for our leading-edge process technologies,” said Wendell Huang, Senior VP and Chief Financial Officer of TSMC. “Moving into second quarter 2026, we expect our business to be supported by continued strong demand for our leading-edge process technologies.

The company expects Q2 revenue of $39-$40.2 billion up from $30.1 billion in Q2 2025 for a gross profit margin of between 65.5% and 67.5% and an operating profit margin of between 56.5% and 58.5%.

TSMC Reports First Quarter EPS of NT$22.08

“Our conviction in ?the multi-year AI megatrend remains high, and we believe the demand for semiconductors will continue to be very fundamental,” said CEO C C Wei.

Full-year revenue is expected to grow more than 30% YoY and capex will ? be at the high end of the announced $52 billion to $56 billion range.

3nm production is being expanded in Taiwan, Japan and the US (pictured), said Wei.

By: DocMemory
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