TSMC just posted some massive financial numbers during its Q1 2026 earnings call. The giant chipmaker reported total revenue of exactly $35.9 billion, representing a solid 6.4% increase from the previous quarter. While celebrating this record-breaking cash flow, TSMC Chairman and CEO C.C. Wei spent considerable time discussing the current state of the global foundry business. He specifically focused on Intel and Tesla, noting how their recent moves impact the highly competitive semiconductor industry.
Wei specifically called out the new Terafab project, a massive joint venture between Intel and Tesla. He publicly admitted that he views Intel as a very formidable competitor in the chipmaking space. However, he also quickly reminded everyone that both Intel and Tesla still rely heavily on TSMC as key customers. Wei explained that successfully running a global foundry business requires a lot more than just drawing up blueprints. He pointed out that building a brand new fabrication plant takes at least 2 or 3 years of hard work, and getting the first batch of chips rolling off the assembly line takes another 1 or 2 years after that.
The new Terafab facility expects to produce around 3,000 wafers each month once its initial trial runs begin. Because achieving full volume production takes so much time, Tesla will still need to buy chips from other established manufacturers like TSMC for the foreseeable future. Meanwhile, Intel plans to launch several crucial new products soon, including its highly anticipated 18A and 14A process nodes. Industry experts expect the 14A node to become a massive winner for Intel, and rumors suggest major companies like NVIDIA might even sign up as future customers.
During the call, Wei also shared his honest thoughts on advanced packaging technology. When analysts asked him to compare TSMC packaging against the Intel EMIB technology, Wei gave a very diplomatic answer. He noted that TSMC already supplies the largest reticle-sized packages in the entire industry for top-tier chips. Still, he called the Intel EMIB system an attractive and welcome technology because it simply gives customers more flexible choices. Intel claims its EMIB design helps build massive chips while significantly reducing the total manufacturing cost compared to standard 2.5D packaging methods.
Moving on to their own hardware, TSMC proudly announced that its new N2 process technology officially entered volume production late in 2025. This new node uses 1st Gen Nanosheet technology and currently delivers very strong production yields. The upcoming AMD EPYC Venice processors will actually be the very first chips to use this new N2 manufacturing process. Wei expects the entire N2 family to remain a vital, long-lasting product line, especially as the global frenzy for Agentic AI tools continues to drive demand for faster, more efficient computer chips.
The ongoing geopolitical conflict between the United States and Iran has recently sparked widespread fears of supply chain shortages. Chipmakers desperately need vital gases and chemicals, including LPG, to keep their factories running safely. Fortunately, TSMC planned for these exact types of global emergencies. The company officially confirmed that it currently holds exactly 3 months’ worth of necessary LPG reserves safely in its storage tanks, ensuring uninterrupted production despite the overseas chaos.
Finally, Wei gave investors a sneak peek at the future A14 process technology. He promised that the upcoming 1.4nm node will deliver a massive performance leap over the current N2 system. According to the early numbers, the A14 chips will provide a 10 to 15 percent speed improvement while using the same amount of electricity. If engineers prioritize battery life instead, the new chips can use 25 to 30 percent less power while matching current speeds. The A14 technology remains perfectly on track for mass volume production by the year 2028.
