Taiwan Semiconductor Manufacturing Company (TSMC) reported a robust 60.3 percent year-on-year increase in net profit for the first quarter of 2025, even as the global chip industry braces for potential disruptions from US trade policy.

The world’s largest contract chipmaker posted a net profit of NT$361.56 billion (approximately $11.1 billion) for the January–March period, surpassing market expectations of NT$346.76 billion, according to a Bloomberg News survey. TSMC’s revenue also surged 42 percent on-year to NT$839.25 billion, exceeding analysts’ forecasts.

The company’s strong quarterly performance comes amid mounting trade tensions, with former US President Donald Trump reinstating aggressive tariff policies. While his so-called “Liberation Day” tariffs, announced on April 2, excluded semiconductors for now, Washington is advancing plans to impose import duties on chips and manufacturing equipment under the guise of national security concerns.

TSMC, a key supplier to tech giants such as Nvidia and Apple, finds itself at the centre of these tensions. Trump has previously accused Taiwan of undermining the US chip industry, despite TSMC’s ongoing investment of $100 billion to expand production capacity in the United States.

The potential imposition of US tariffs on semiconductors could have significant implications for TSMC, which relies heavily on exports to North American markets. Although the current 32 percent tariff on Taiwanese imports excludes chips, the pause is temporary, and further duties are under consideration.