Taiwan Semiconductor Manufacturing Company posted record fourth-quarter earnings, propelled by soaring demand for artificial intelligence hardware and high-performance computing chips. The result marks a sharp rebound for the world’s largest contract chipmaker and underscores its central role in the global AI supply chain.
TSMC reported net profit of NT$505.7 billion (US$16 billion) for the three months to December 2025 — up 35 per cent year-on-year and ahead of analysts’ expectations. Quarterly revenue rose more than 20 per cent to NT$1.05 trillion (US$33 billion), reflecting continued strength in advanced process technologies. Both profit and revenue reached all-time highs, extending the company’s run of double-digit growth into a seventh consecutive quarter.
Chief executive C.C. Wei said the results were driven by “strong demand for AI-related applications and high-performance computing,” noting that advanced packaging capacity remained “fully utilised” through the quarter. He added that TSMC expects this momentum to continue through 2026 as AI adoption broadens across industries.
The surge comes amid a renewed upcycle in semiconductor investment. As the principal manufacturer behind many of the world’s leading chip designers — including Nvidia, Apple, and AMD — TSMC has benefited from escalating orders for the logic processors and accelerators that underpin data-centre infrastructure. Its 3-nanometre production ramp-up and advanced CoWoS packaging technologies have become critical to the performance of AI training systems worldwide.
Alongside its earnings, TSMC confirmed plans to raise capital expenditure to between US$52 billion and US$56 billion this year, up from US$40.9 billion in 2025. The increased outlay will fund expansion of advanced manufacturing capacity in Taiwan and the United States, including additional investment in its Arizona fabrication facilities. Executives said the spending would support customer demand for cutting-edge nodes while maintaining the company’s technological lead.
The results reinforce expectations that the global semiconductor sector is entering a multi-year period of AI-driven growth. Nvidia and other chip designers have similarly posted record earnings on surging GPU demand, while memory-chip producers are forecasting improved pricing and profitability through 2026.
TSMC shares have risen sharply over the past year, supported by strong order visibility and investor confidence in its positioning at the heart of AI hardware production. Analysts caution, however, that geopolitical tensions and export-control measures could still pose risks to long-term supply-chain stability.
For now, TSMC’s record quarter signals the scale of capital and innovation flowing into AI semiconductors — and the company’s pivotal role in enabling that transformation.
You must be logged in to post a comment.