[News] TSMC March Revenue May Hit Record High; Geopolitics, Samsung Rivalry in Focus Ahead of Earnings Call
TSMC’s upcoming April 16 earnings call is set to be closely watched, as investors assess whether strong AI demand continues to support revenue momentum. According to Commercial Times, expectations are high that TSMC’s first-quarter revenue will remain above the NT$1 trillion mark. In line with this outlook, institutional investors note that TSMC’s March consolidated revenue, soon to be released, could reach another record high. At the same time, the market is closely watching first-quarter gross margin performance and progress in capacity expansion.
As the report notes, market expectations for TSMC’s first-quarter performance remain high. Based on the company’s previously issued guidance, TSMC has forecast consolidated revenue of US$34.6 billion to US$35.8 billion, equivalent to roughly NT$1.093 trillion to NT$1.131 trillion at an exchange rate of NT$31.6 to the US dollar. The report adds that with consolidated revenue reaching NT$718.912 billion in the first two months of the year, the company would be able to meet the high end of its guidance if March revenue comes in at around NT$420 billion.
The report also notes that TSMC expects 2026 to be another year of strong growth, with full-year revenue projected to rise by nearly 30% in US dollar terms. Industry sources add that this momentum is driven by continued ramp-up at advanced nodes, particularly strong demand for 3nm and 2nm. Capacity for N3 and N2 is expected to grow by around 30% to 40% and to double, respectively, by 2027. The report adds that N2 is widely seen as the node likely to become the company’s largest future revenue contributor.
In addition, institutional investors cited by the report indicate that customer demand for TSMC’s capacity continues to exceed supply, prompting the company to push capital spending toward the upper end of its US$56 billion range. Construction in Taiwan remains on track, while its U.S. fabs may reach targets ahead of schedule. Equipment installation for the P3 fab is also set to begin in the second half of the year to support demand.
Geopolitics Pricing and Competition in Focus
Meanwhile, Central News Agency, citing analysts, notes that beyond AI demand, the impact of geopolitical factors on supply chain costs and raw material availability, including strategies for securing energy and key gases, will also be topics to watch at the upcoming earnings call. Analysts add that TSMC’s efforts to raise foundry pricing and pass on higher costs will be critical to maintaining gross margins above 53% over the long term.
Central News Agency also notes that the competitive landscape between TSMC and rivals such as Samsung remains a key focus for the market. In particular, the Terafab initiative, jointly driven by Tesla and SpaceX, aims to produce chips for AI, robotics, and space-based data centers. How TSMC leverages stable yields at advanced nodes to reinforce its market share advantage will be closely watched.
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(Photo credit: TSMC)
