Taiwan Semiconductor Manufacturing Co. posted blockbuster first-quarter growth, reinforcing that the infrastructure layer behind AI continues to accelerate despite stock market volatility.
TSMC's results, combined with strong reports from ASML, Applied Materials, and Micron, confirm that the AI chip supercycle remains fully intact heading into H2 2026.
Revenue reached $28.4 billion in Q1, a 37% increase year-over-year. The company's advanced packaging division — which produces the chip-on-wafer-on-substrate (CoWoS) technology essential for AI chips — grew 89% year-over-year.
TSMC's 3nm process node, used in Apple's latest chips and Nvidia's next-generation GPUs, is now running at full capacity. The company announced plans to bring its 2nm node online in late 2026, six months ahead of the original schedule.
Geopolitical risk remains a persistent overhang. TSMC has accelerated construction of its Arizona fabrication plant, which is expected to begin volume production in early 2027 — providing a geographic hedge against Taiwan Strait tensions.