Taiwan Semiconductor Manufacturing Co.’s revenue rose 48% in April, showing how electronics companies rushed to buy important parts before global tariffs began.
TSMC, the leading chipmaker for Apple and Nvidia, reported April sales of NT$349.6 billion ($11.6 billion). This is higher than analysts expected, who had predicted a 38% increase in revenue for the second quarter.
The Trump administration’s trade war is causing economists to change their global GDP forecasts, creating uncertainty about iPhone sales, computer use, and data center construction.
However, TSMC, a key player in the tech supply chain, says demand is still strong—especially for high-end Nvidia chips, which are important for developing artificial intelligence.
The recent rise in the value of the Taiwan dollar could hurt TSMC’s profit margins since most of its business is done in US dollars.
TSMC explained that every 1% increase in the Taiwan dollar’s value reduces its operating margin by 0.4 percentage points.
The Trump administration has removed some AI chip limits implemented during Biden’s time as part of a plan to change global chip trade rules that many found unpopular. This could be good news for TSMC in the short term.
However, the administration is working on its own rules, likely focusing more on direct talks with other countries.
According to a Bloomberg News report, the Trump administration plans to cancel the Biden-era AI diffusion rule, which could briefly allow more AI chip shipments. This would benefit TSMC, as 20% of its sales come from making AI chips.
However, there is still long-term uncertainty. The U.S. is expected to bring stricter export rules to stop China from accessing U.S.-designed AI chips through other countries.
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