Taiwan Semiconductor Manufacturing Company Limited (TSM) Announced Q1 2026 Earnings on April 16, 2026, Reporting "revenue of USD 35.9 billion".

Taiwan Semiconductor Manufacturing Company Limited reported its financial results for the first quarter of 2026.

Management stated, "We concluded our first quarter with revenue of USD 35.9 billion". First quarter gross margin was 66.2%, and first quarter operating margin was 58.1%.

First quarter EPS was TWD 22.08.

The company noted that 3-nanometer process technology contributed 25% of wafer revenue in the first quarter, while 5-nanometer and 7-nanometer accounted for 36% and 13%, respectively.

High performance computing increased 20% quarter-over-quarter to account for 61% of first quarter revenue.

Regarding business updates, management highlighted that "AI-related demand continues to be extremely robust". To support this demand, the company is increasing capital expenditures to expand 3-nanometer capacity.

Management stated, "We now expect our 2026 capital budget to be towards the high end of our range of between USD 52 billion and USD 56 billion". The company outlined a global capacity plan that includes a new 3-nanometer fab in Taiwan, utilizing 3-nanometer technologies in a second Arizona fab, and planning to use 3-nanometer technology in a second Japan fab.

Management also provided an update on its A14 technology, featuring its second-generation nanosheet transistor structure, stating, "Our A14 technology development is on track and progressing well," with volume production scheduled for 2028.

For forward guidance, management expects second quarter 2026 revenue to be between USD 39.0 billion and USD 40.2 billion.

Based on an exchange rate assumption of USD 1 to TWD 31.7, second quarter gross margin is expected to be between 65.5% and 67.5%, and second quarter operating margin is expected to be between 56.5% and 58.5%.

For the full year 2026, the company expects revenue to "grow by above 30% in U.S. dollar terms". Additionally, management mentioned that the initial ramp-up of 2-nanometer technology is expected to cause between 2% and 3% gross margin dilution for the full year of 2026.