New Delhi [India], April 17 (ANI): Taiwan Semiconductor Manufacturing Co. (TSMC) has forecast that its 2026 sales will grow by more than 30 per cent in US dollar terms from a year earlier, on the back of strong global demand for artificial intelligence (AI) applications, according to Focus Taiwan CAN English News.

Speaking at an investor conference, TSMC Chairman CC Wei said the current AI boom continues to push up demand for computing, which is expected to boost shipments of chips made using the chipmaker's advanced processes.

Wei said the world's largest contract chipmaker remains confident about AI development and its sales outlook, expecting revenue in 2026 to grow by more than 30 per cent, an upgrade from its initial estimate in January, when TSMC forecast sales growth of closer to 30 per cent.

Before the investor conference, TSMC reported a record USD 18.16 billion in first-quarter revenue, up 13.2 per cent from a quarter earlier, with earnings per share of USD 0.70. Its consolidated sales also reached a record approximately USD 35.82 billion, up 8.4 per cent from the previous quarter.

TSMC is paying close attention to a recent price spike in electronic components and uncertainties created by military conflict in the Middle East, Wei said. As such, it will take a prudent approach in business planning and seek to cement the company's lead over its peers in the global market, Wei added.

Also at the investor conference, TSMC Chief Financial Officer Wendell Huang said the company expects second-quarter sales to range between USD 39.0 billion and USD 40.2 billion, with the midpoint expected to rise 10 per cent from a quarter earlier and 32 per cent from a year earlier.

TSMC's gross margin, the difference between revenue and cost of goods sold, is forecast to reach 65.5-67.5 per cent, with the median figure expected to rise 0.3 percentage points from the first quarter, according to Huang.

In the longer term, TSMC will continue efforts to maintain its gross margin above 56 per cent, Huang added.

In response to strong demand for 5G, AI and high-performance computing (HPC) applications from clients, Huang said the company estimates capital expenditure for 2026 will be at the higher end of the USD 52 billion-USD 56 billion range it forecast in January.

The capex aims to help TSMC grow in the future and stably boost its EPS to benefit its shareholders, Huang added. The company's capex totalled USD 101.0 billion over the previous three years and the 2026 figure will be more than half that total, indicating the company is upbeat about AI growth, he said.

Over the next three years, TSMC's capex is expected to beat that of the previous three-year period, Huang added.

According to TSMC, its first quarter capex totalled USD 11.1 billion, down 3.5 per cent from the previous quarter but up 10.3 per cent from a year earlier. (ANI)