TSMC Reports Record Profits as AI Demand Drives Growth

The world's largest contract chipmaker sees strong revenue growth, doubling AI-related sales in 2025, and manages geopolitical challenges.

Taiwan Semiconductor Manufacturing Co. (TSMC) reported a 57% year-over-year rise in Q4 net profit to $11.4 billion, exceeding analyst expectations.
Revenue for the quarter reached $26.88 billion, driven by demand for advanced 3nm and 5nm chips used in AI and high-performance computing applications.
The company forecasts AI-related revenue to double in 2025 after tripling in 2024, with overall revenue growth projected in the mid-20% range for the year.
TSMC plans to increase capital expenditures to between $38 billion and $42 billion in 2025, focusing on advanced nodes and expanding global production facilities.
Despite U.S.-China trade tensions and upcoming U.S. export restrictions on AI chips, TSMC's leadership described these challenges as manageable and expressed confidence in securing necessary permits.