Key Takeaways from TSMC's Q1 Financial Report

1. Outperforming Expectations: First quarter net profit reached 572.5 billion TWD, and gross margin rose to 66.2%, both significantly exceeding market expectations.2. Revenue Structure Adjustment: High-Performance Computing (HPC) contributed 61% of sales, becoming the absolute core; whereas the smartphone business declined by 11% quarter-on-quarter due to seasonal factors.3. Leading Process Technology: Advanced processes (7nm and below) accounted for 74% of revenue, with 3nm contributing 25% and 5nm accounting for 36%.4. External Environment Challenges: Although the situation in the Middle East (Iran war) has raised potential concerns over the supply of energy and key materials (such as helium and sulfur), the direct impact on TSMC is currently limited.Expand