Taiwan Semiconductor Manufacturing Company Limited Q1 2026 Earnings Recap

TSMC delivered robust Q1 results with 8.4% sequential revenue growth and raised its full-year outlook, supported by strong demand for advanced process technologies and high capacity utilization.

Key Takeaways

• Q1 revenue reached USD 35.9 billion, up 6.4% YoY, with gross margin at 66.2%, driven by cost efficiencies and favorable FX.
• Advanced technologies (7nm and below) comprised 74% of wafer revenue, with a notable 25% contribution from 3nm.
• HPC platforms surged 20% QoQ, now accounting for 61% of revenue, while smartphone sales declined 11%.
• The company projects Q2 revenue of USD 39.0–40.2 billion, with gross margins maintaining around 66.5%, despite ongoing dilution from 2nm ramp-up and overseas fab expansion.
• TSMC emphasizes supply chain resilience and expects no near-term disruptions from geopolitical risks, while preparing for a 2–3% margin dilution from new node ramps in 2026.