TSMC: Profits Soar By 39% Due To Global AI Chip Demand
The Taiwanese giant TSMC (Taiwan Semiconductor Manufacturing Company), the leading global manufacturer of semiconductors for Apple, Nvidia, AMD, Broadcom, and Qualcomm, has recently reported spectacular quarterly results, driven by soaring demand for chips designed for artificial intelligence.
TSMC: Profits Rise By 39% And Record Revenue
For the third quarter of 2025, TSMC reported a net profit of 452.3 billion New Taiwan Dollars (approximately 15 billion USD), an increase of 39.1% year-on-year. Revenue saw a 30% growth, significantly surpassing analysts’ forecasts.
The LSEG SmartEstimate, which had predicted 417.7 billion New Taiwan Dollars, was thus exceeded by a considerable margin.
“The demand for TSMC products is unwavering. Even with tariffs on exports to the United States, its business will not weaken,” emphasizes Morningstar, highlighting the semiconductor manufacturer’s technological dominance.
AI: The Main Growth Driver
Almost all major artificial intelligence giants today rely on TSMC’s production lines:
- Nvidia, with its GPUs and H20 accelerators,
- AMD, with its MI350 chips,
- Broadcom and Qualcomm for their AI and 5G components,
- and of course Apple, which uses the 3nm process for its M5 and A19 chips.
This surge in demand for AI training and inference processors directly boosts the foundry’s profits.
CEO C.C. Wei confirms: “The demand related to AI is even stronger than we anticipated three months ago. Our clients are asking us to increase production capacity to support their growth.”
Upwardly Revised Forecasts For 2025
Capitalizing on this enthusiasm, TSMC has raised its annual growth forecast. The company now expects revenue growth between 30% and 35% in USD for 2025.
The company also maintains its massive investment budget of 42 billion dollars, aimed at accelerating the deployment of the 2nm node, expanding its factories in Taiwan, Japan, Arizona, and Germany, and mass-producing high-margin AI GPUs and NPUs.
Despite concerns from some observers about an increasing dependence on the artificial intelligence sector, TSMC fully embraces its strategy. The leadership believes that U.S. sanctions targeting China will have only a limited impact, as global AI demand will more than compensate for any potential losses in the Chinese market.
“Our conviction in the AI megatrend strengthens quarter after quarter,” stated C.C. Wei.
TSMC: An Empire Hard to Shake
TSMC remains the undisputed master of the “fabless world”, producing the most advanced chips in the world for tech giants. With over 60% market share in advanced semiconductor production, its technological lead—and the insatiable appetite for AI—ensures it a nearly unassailable position.
