TSM.US revenue surged 48% in April, global companies scramble to buy chips to prepare for tariffs

The Zhitong Finance App learned that TSM.US achieved 48% revenue growth in April. This significant increase in performance reflects the urgent trend of electronics companies stepping up procurement of key components before the new tariff policy came into effect. As a core chip supplier for Apple (AAPL.US) and Nvidia (NVDA.US), TSMC announced monthly sales of 349.6 billion NTD (equivalent to USD 11.6 billion). This figure is impressive compared to analysts' average expectations of 38% revenue growth in the second quarter.

The trade war initiated by the Trump administration has caused economists to adjust global GDP forecasts, which has had a negative impact on iPhone market demand and development prospects in many fields such as computing and data center construction, shrouded in a shadow. However, with its irreplaceable key position in the supply chain, TSMC can be seen as a “barometer” of global technology spending. The company clearly stated that market demand remains strong, especially for Nvidia's high-end chips, which are critical to the development of artificial intelligence.

However, the recent sharp appreciation of the Taiwan dollar may put some pressure on TSMC's future profit margins. Because the vast majority of TSMC's business is denominated in US dollars. According to information previously disclosed by TSMC, every 1% increase in the value of the NTD will cause its operating profit margin to drop by 0.4 percentage points.

Currently, the Trump administration has decided to lift some restrictions on artificial intelligence chips in the Biden era. This is part of a broader effort to revise unpopular restrictions on global semiconductor trade. In the short term, this may be a positive sign for TSMC. Despite this, the US government is still actively preparing to draft a new version of the rules, which may focus more on direct negotiations with various countries.

According to reports, US President Donald Trump's administration proposed a plan to repeal the AI proliferation rules of the Biden era. This provides a short window for more extensive AI chip shipments, and TSMC (20% of sales comes from AI chip production) will directly benefit from this.

However, as the US government is about to implement new and possibly stricter export control measures, which focus on preventing China from indirectly obtaining artificial intelligence chips designed by the US, uncertainty still exists in the long run.