Taiwan Semiconductor Manufacturing Co. (TSMC) shattered its previous records in April as customers rushed to lock in chip orders ahead of looming US tariffs.
This comes as the Trump administration imposed sweeping tariffs on exports into the US, igniting panic buying as customers sought to beat the new trade policy. Some automakers have also experienced brisk business in April as customers feared tariff-induced price increases.
Electronics customers drove TSMC April sales
April sales jumped 48.1% year‑on‑year to NT$349.57 billion (US$10.8 billion), eclipsing the prior high of NT$314.24 billion set in October 2024. That surge drove first‑four‑month revenue to NT$1.19 trillion, up 43.5% versus the same period last year.
Electronics firms “scrambled to acquire essential components before global tariffs took effect,” it was reported, underscoring the front‑loading of demand that has buoyed TSMC’s top line.
Indeed, customers moved orders originally slated for later in 2025 into April, aiming to avoid the hefty levies President Trump proposed in early April, a 32% tariff on Taiwanese imports, later delayed until July, on top of an existing 10% duty on all US exports.
“Customers rushed to bring forward orders scheduled for later this year, trying to sidestep the financial burden that these tariffs would impose.”
TSMC spokesperson.
The chipmaker’s role as the principal foundry for Apple and Nvidia makes it a sensitive barometer of global tech spending.
Bloomberg Intelligence notes that roughly 20% of TSMC’s sales derive from AI‑chip production, and that “demand remains resilient, including for the high‑end Nvidia chips critical to developing artificial intelligence.”
Yet the very forces that propelled April’s record haul also carry risks. The Taiwan dollar’s appreciation dents profitability, and TSMC has warned that “for every 1% of appreciation of the local currency, there is a 0.4 percentage‑point erosion of its operating margin,” as cited in a Bloomberg article.
Can the tariff-induced order rush sustain growth for TSMC?
Meanwhile, while Trump’s administration has signaled a rollback of some Biden‑era restrictions on AI‑chip exports, offering a temporary boon, new, tighter controls aimed at curbing China’s indirect access to US‑designed chips are expected soon, casting a shadow over long‑term visibility.
TSMC’s operational footprint remains global. Although it has pledged US$165 billion to expand US capacity and already runs one foundry in Arizona, now being enlarged, it still manufactures the bulk of its output in Taiwan. That geographic split could prove pivotal if tariffs or export controls tighten further.
“We’re monitoring trade discussions closely.”
TSMC.
The company made comments noting the ongoing talks between Taiwanese and US officials since mid‑April.
Despite uncertainty, TSMC’s fundamentals appear robust. The company has ridden a two‑year wave of AI‑driven demand, cementing its centrality in the chip ecosystem. Its ability to ramp production quickly, and customers’ willingness to prepay for security of supply, helped drive April’s 48.1% year‑on‑year sales leap. Analysts had expected roughly a 38% rise in second‑quarter revenue; the April outturn suggests TSMC may exceed those forecasts.
Looking ahead, the key questions are how long the tariff‑induced order rush can sustain growth, and whether currency pressures and renewed export curbs will erode margins. For now, though, TSMC has delivered a stunning demonstration of its strategic importance. As one industry observer put it, “In a world bracing for higher trade barriers, TSMC remains both the lightning rod and the lifeline of global semiconductor supply chains.”
TSMC’s new 2 nm node has rapidly reached maturity, matching the defect‑density of its 3 nm and 5 nm processes. Its switch to gate‑all‑around nanosheet transistors lets designers prioritize either peak performance or ultra‑low power, while delivering a 10–15% speed boost over the N3E node.
Major customers are already lining up: Apple is expected to use N2 in its upcoming iPhone 18 series, NVIDIA will deploy it in its Vera Rubin GPUs, and AMD has become the first to officially announce Zen 6 “Venice” CPUs built on 2 nm. With demand from these tech giants set to outstrip initial supply, TSMC’s N2 node looks poised for a swift, widespread rollout.
Your crypto news deserves attention - KEY Difference Wire puts you on 250+ top sites
