By Sherry Qin

Taiwan Semiconductor Manufacturing Co. is scheduled to report first-quarter results on Thursday. Here is what you need to know:

NET PROFIT: The Taiwanese chip maker is expected to post a 56% rise in quarterly net profit to 351.65 billion New Taiwan dollars, equivalent to US$10.86 billion, according to the consensus estimate of 24 analysts in a FactSet poll. That would compare with NT$225.49 billion in the year-earlier period.

REVENUE: The world's largest contract chip maker's revenue rose 42% to NT$839.25 billion in the first quarter, based on monthly figures provided by the company. That is slightly higher than its guidance of US$25.00 billion to US$25.80 billion. It said in February that revenue was likely to come in at the lower end of that range due to a NT$5.3 billion loss from an earthquake in Taiwan in January.

The fading AI buzz and U.S. tariff concerns have weighed on TSMC's Taipei-listed stock, which has slumped 18% this year after dropping 15% in the first quarter. The emergence of Chinese startup DeepSeek's low-cost model has led investors to ponder whether new technological developments will erode demand for high-end chips and question the sustainability of U.S. tech giants' investments in AI infrastructure. Its shares have also taken a hit since President Trump announced sweeping reciprocal tariffs on America's trading partners, including Taiwan, though semiconductors are exempt from the tariffs for now.

WHAT TO WATCH:

--Investors will look for TSMC's latest outlook for 2025 after the recent tariff chaos. Speaking at an event last week, Trump said he told TSMC it would face up to a 100% tax if it didn't build plants in the U.S. Investors are bracing for Trump's semiconductor tariffs and the outcome of Taiwan's trade negotiations with the U.S. over the coming months.

--TSMC in March announced plans to invest at least US$100 billion more in chip-manufacturing plants in the U.S. over the next several years. TSMC Chairman C.C. Wei said later at a press conference alongside Taiwan President Lai Ching-te that customer demand rather than political pressures drove the move. Analysts have raised concerns about the higher cost of production in the U.S., saying it will weigh on the company's margins in the long term.

Write to Sherry Qin at sherry.qin@wsj.com

(END) Dow Jones Newswires

April 15, 2025 05:03 ET (09:03 GMT)

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