TSMC Reports 58% Profit Increase Amid Rising AI Demand and Iran War Concerns

TSMC announced a 58% increase in first-quarter profits driven by demand for AI technology. The company also highlighted potential supply chain challenges linked to the Iran conflict and plans to expand chip production capacity globally.

TSMC supplies chips to major technology companies including Apple and Nvidia. The company is focusing on producing advanced 3-nanometer semiconductors used in smartphones and AI products. To meet demand, TSMC is expanding its chip fabrication plants in Taiwan, the United States, and Japan.

Supply

Chain and Investment Outlook TSMC noted that the ongoing conflict in Iran has contributed to rising global supply chain costs and disrupted supplies of key materials such as helium, which is essential for chip manufacturing.

The company has prepared safety stock inventories, including helium, and does not anticipate near-term operational impacts. Capital expenditure for 2026 is expected to be significantly higher than in previous years, with planned investments reaching between $52 billion and $56 billion, up from about $40 billion in 2025.

The company has committed $165 billion toward expanding manufacturing capacity, including new plants in Arizona.

“AI-related demand continues to be extremely robust. Our conviction in the multi-year AI megatrend remains high, and we believe the demand for semiconductors will continue to be very fundamental.”