TAIPEI (TVBS News) — Taiwan Semiconductor Manufacturing Company (TSMC, 台積電) surprised investors Thursday (April 17) with a breathtaking 60% surge in first-quarter profits, handily beating analyst expectations as the world's dominant chipmaker rides an unprecedented wave of demand for artificial intelligence processors. The semiconductor giant's performance offers a window into the explosive growth reshaping the global technology landscape.
The chipmaking juggernaut reported January-March net profit of NT$361.6 billion (US$11.17 billion), towering above the NT$225.5 billion (US$6.96 billion) from the same period last year. Yet investors responded with caution, as TSMC shares wavered on the Taiwan Stock Exchange ahead of the afternoon earnings release. The company's stock has tumbled 20% this year, reflecting mounting anxiety over potential U.S. trade restrictions, despite the remarkable profit growth.
Still, TSMC Chair and CEO C.C. Wei (魏哲家) pushed for an ambitious expansion blueprint for the company's home base operations during the earnings call. "In Taiwan, with support from the Taiwan government, we plan to build 11 wafer manufacturing fabs and 4 advanced packaging facilities over the next several years," Wei declared, his voice conveying confidence despite market turbulence. "Volume production of 2 nanometer (wafers) is expected to start in the second half 2025, and we are preparing for multiple phases of two nanometer waves in both Hsinchu and Kaohsiung science parks to support the strong structural demand from our customers."
The dramatic expansion arrives at a pivotal moment for the global semiconductor landscape. The specter of punitive tariffs looms large, with President Trump threatening levies as high as 100% unless TSMC and industry peers fast-track their American manufacturing commitments. Market analysts have trained their microscopes on TSMC's capital expenditure projections, which are poised to shatter previous records. Wendell Huang (黃仁昭), TSMC's Senior Vice President and CFO, stepped forward to illuminate the company's sweeping investment strategy.
"We reiterate our 2025 capital budget is expected to be between US$38 and 42 billion (NT$1.23 trillion and NT$1.36 trillion) as we continue to invest to support customers' growth," Huang stated with measured precision. "About 70% of the capital budget will be allocated for advanced process technologies. About 10 to 20% will be spent on specialty technologies, and about 10 to 20% will be spent for advanced packaging testing, mask making, and others."
Huang further revealed the company's monumental commitment to American manufacturing. "Our 2025 capex also includes a small amount related to our recently announced additional US$100 billion (NT$3.24 trillion) investment plan to expand our capacity in Arizona," he added. The staggering figure underscores TSMC's determination to establish a robust presence in the United States despite the geopolitical crosscurrents buffeting the industry.
In Taiwan's economy, where TSMC is reverently dubbed the "sacred mountain" (護國神山) protecting the island nation's prosperity, the escalating geopolitical tensions have cast a long shadow of uncertainty. The chipmaker's outsize importance to Taiwan — accounting for roughly 20% of the stock market's total value — means its fortunes are inextricably linked to national economic security. This climate of unpredictability has fostered widespread caution in corporate investment planning, with many firms reluctant to break ground on new facilities that could become financial albatrosses.
Industry observers identify the mercurial character of emerging protectionist trade policies as the most alarming dimension of the current predicament. The semiconductor sector, with its elaborate global supply chains and massive capital requirements, cannot pivot quickly in response to sudden policy shifts. Economists warn that continued volatility could trigger cascading disruptions throughout the technology ecosystem, potentially catalyzing a worldwide economic downturn as this vital industry struggles to chart a course through increasingly turbulent waters. ★
