Taiwan Semiconductor Manufacturing Company (TSMC) reported blockbuster Q1 2025 results, with net profit soaring 60% year-over-year to NT $($9.2 billion), trouncing analyst estimates of NT$251 billion. The world’s largest contract chipmaker benefited from:

• 3nm chip ramp-up: 35% revenue contribution
• AI boom: 78% growth in HPC segment
• Pricing power: 8% average wafer price increase

However, CEO C.C. Wei warned of “significant uncertainty” from:
✓ Potential Trump-era 25% tariff on advanced chips
✓ Proposed ban on TSMC tech exports to China
✓ $28B in delayed Arizona fab investments

“While demand remains robust, geopolitical risks could derail 2026 growth,” Wei cautioned during the earnings call. The company maintained its full-year revenue guidance of 24-26% growth but acknowledged:
→ 15% of orders could be impacted by U.S. policies
→ Inventory corrections emerging in smartphone sector
→ Rising EUV tool costs squeezing margins