Taipei: Taiwan Semiconductor Manufacturing Corporation (TSMC), the world's largest semiconductor manufacturer, experienced a significant profit increase of 60.3% year on year in the first quarter of 2025. The company's profit soared to 361.56 billion new Taiwan dollars, equivalent to approximately $11.12 billion, as per the financial results released on Thursday.

According to Anadolu Agency, TSMC's net sales also rose by 41.3% during the same period, reaching $25.8 billion. These figures surpassed the forecasts made by the London Stock Exchange Group (LSEG), which had predicted revenue of $25.7 billion and a profit of $10.9 billion for the first quarter of 2025.

The robust profit growth was largely driven by increased demand for semiconductors used in artificial intelligence (AI) applications globally. Wendell Huang, TSMC's Chief Financial Officer, noted that while the business was affected by smartphone seasonality, this was partially countered by the ongoing growth in AI-related demand. He expressed optimism for the second quarter of 2025, anticipating strong demand for the company's advanced 3nm and 5nm technologies.

Huang also mentioned the potential uncertainties and risks posed by tariff policies, emphasizing that TSMC will continue to monitor these developments closely and manage its business prudently. TSMC's major clients include prominent US technology companies such as Apple, Nvidia, AMD, Broadcom, and Qualcomm.

In light of US President Donald Trump's announcement of "reciprocal" tariffs on imported products, TSMC recently declared a $100 billion investment to construct semiconductor plants in the US, increasing its total investments in the country to $165 billion.