Taiwan Semiconductor Manufacturing Co. is going to look at more growth in Arizona as demand continues to rise for its semiconductor chips that boosted its profit and revenue during the first quarter.
TSMC reported a 58% increase in profits for the first quarter during its Thursday morning earnings call.
First-quarter revenue was $35.9 billion, which increased 40.6% year-over-year and increased 6.4% from the previous quarter, according to a release.
First quarter profit was $23.7 million.
Year-over-year, first-quarter revenue increased 35.1%, while net income and diluted earnings per share both increased 58.3%. Compared with fourth-quarter 2025, first-quarter results represented an 8.4% increase in revenue and a 13.2% increase in net income.
“Our business in the first quarter was supported by strong demand for our leading-edge process technologies,” said Wendell Huang, Senior VP and Chief Financial Officer of TSMC in a release. “Moving into the second-quarter 2026, we expect our business to be supported by continued strong demand for our leading-edge process technologies.”
CC Wei, chairman and CEO of TSMC, made comments during the earnings call about the Arizona fabs. The second fab completed construction recently, and confirmed that volume production will begin in 2027.
“In Arizona, our second fab will also utilize 3(nanometer) technologies,” Wei said in the earnings call. “Construction is already complete, and volume production will begin in the second half of 2027.”
Wei also talked about the recent acquisition of land near their original site.
TSMC recently won an auction with the Arizona State Land Department in January of land just south of the Loop 303 and 51st Avenue.
"We acquired the second land because we need it,” Wei said. “We want to build more fabs in Arizona, and this is actually to meet the multiyear demand from our leading-edge US customers.
“Let me emphasize again that we are working very hard to speed it up.” Wei added. “We have already gotten a lot of experience in Arizona, and so now we have much more confidence that we can make good progress, and we are moving aggressively forward. We also expect we can improve the cost structure, of course.”
Based on early estimates, TSMC is expecting a second quarter revenue to be between $39 billion and $40.2 billion, with the gross profit margin expected to be between 65.5% and 67.5%.
Meet Jeff Jeff Wendt started at Independent Newsmedia in January 2023, after 25 years working for Gannett and The Arizona Republic. Started as a high school sports scoretaker, worked up to reporting high school sports and then became an associate high school sports editor in 2002. Also worked in the Design Studio as a copy editor.
Community: Jeff serves on the Board of Elders at his local church.
Education: Arizona State University with a Bachelor’s Degree in Journalism and Mass Communication
Random fact: Attended Game 2 of the 2001 World Series.
Hobbies: Playing video games (yes still the kid in me), watching reality TV, playing poker.
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