TSMC Posts Strong Q1 2025 Results, 2025 Outlook, Despite Lingering Tariff Concerns
Overview: TSMC reported strong Q1 2025 results with a 35% YoY revenue increase and expects full-year revenue to grow by around mid-20% YoY. Growth is driven by rising AI-related demand, with AI orders expected to see a solid mid-40% CAGR over the next five years. Despite ongoing tariff concerns and volatility in the semiconductor industry, the impact on foundry orders remains limited. TSMC also ruled out a joint venture with Intel’s U.S. fab and confirmed it will keep its most advanced nodes in Taiwan.
Table of contents:
- TSMC rules out possibility of a JV with Intel US fab
- TSMC’s investment plan in the US for mitigating geopolitical risk
- Robust AI demand to weigh on TSMC’s revenue growth
- Tariffs provoke strong sentiments, negative effects on orders are relatively limited
- We remain positive on TSMC’s long-term leading position in advanced process node
Published Date: May 2025
Category
Industry
Semiconductors
Service
Premium
Report Type
Report
Time Period
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Author
William Li
William is a Research Analyst in Semiconductor and Components team, based in Taiwan. He has over 8 years of experience in global PC (personal computer) and semiconductor market. Before Counterpoint, he was an equity research analyst at Credit Suisse, focused on both technology and non-technology sectors as well as supporting Taiwan equity market strategy research. Prior, he worked for a Taiwan PE fund as a research analyst covering semiconductor and downstream components sector.