Taiwan Semiconductor Manufacturing Company (TSMC) reported a 58% increase in first-quarter profit to a record level, surpassing analyst expectations as global demand for artificial intelligence chips remained strong.

The world's largest contract chip manufacturer's results demonstrated resilient performance despite ongoing geopolitical tensions in the Middle East. The company's advanced semiconductor nodes, particularly those at 7 nanometers and below, represented 74% of wafer revenue during the quarter.

TSMC's cutting-edge 3-nanometer chips contributed 25% of total wafer revenue in the first quarter, highlighting the company's technological leadership in the most advanced semiconductor manufacturing processes. These chips are critical components in high-performance computing applications and AI systems.

The strong financial performance comes as Taiwan's overall market capitalization surpassed $4 trillion, overtaking the United Kingdom's market value. This milestone reflects the island's growing prominence in the global technology sector, driven largely by the artificial intelligence boom.

TSMC's results underscore the continued global appetite for advanced semiconductors, particularly those used in AI applications, even as other technology sectors face varying levels of demand pressure. The company serves as a key supplier to major technology companies worldwide, manufacturing chips designed by clients including Apple, Nvidia, and other leading firms.