TAIPEI (Taiwan News) — Taiwan Semiconductor Manufacturing Co. (TSMC) released details of its quarterly earnings on Thursday (April 14).

The world’s leading chip manufacturer’s revenues beat expert estimates amid strong demand for a wide array of electronics products, from smartphones to automobiles, per Bloomberg. TSMC’s net income rose to NT$202.7 billion (US$7 billion) in the first quarter of 2022, beating analysts’ average forecast of NT$186.1 billion.

The updated earnings came after TSMC announced Friday (April 8) that its total revenue for the same period reached NT$491.1 billion. This represented a quarterly increase of 36%.

Despite the rosy quarterly numbers, economic instability, geopolitical tensions, and ongoing supply chain shortages mean an uncertain outlook for the semiconductor market through 2022.

To keep its lead over chipmaking rivals, TSMC has allocated a record US$40 billion to revamp its production infrastructure this year. Yet Credit Suisse’s Randy Abrams warns chip sales could take a hit later in the year if higher interest rates, lockdowns in China, and soaring commodity prices bite hard and consumers tighten their purse strings.