TSMC Posts Record Profit with 35% Jump on AI Chip Demand
Taiwan Semiconductor Manufacturing Company (TSMC) reported a fourth-quarter net income of NT$505.74 billion, surpassing estimates by 5.7% and marking its eighth consecutive quarter of year-over-year profit growth. Revenue for the quarter reached NT$1.046 trillion ($33.73 billion), exceeding forecasts, while full-year 2025 revenue crossed $100 billion for the first time.
Advanced chips of 7-nanometer or smaller accounted for 77% of wafer revenue, with AI and high-performance computing driving 55% of total sales. TSMC's capital expenditure for 2026 is projected at $52-56 billion, a 25% increase from 2025’s $40.9 billion. Revenue guidance for 2026 anticipates nearly 30% growth, with Q1 projections between $34.6-35.8 billion.
The Taiwan-based chipmaker, which produces processors for clients like Nvidia and AMD, continues to benefit from surging demand for AI applications. Its high-performance computing division, encompassing AI and 5G, now represents the majority of its sales.