TSMC Earnings Show Record Profit on AI Demand
TSMC earnings showed record Q4 profit and 77.0% advanced-node wafer share tied to AI-server demand, lifting the growth outlook and supporting bigger capex.
KEY TAKEAWAYS
- Reported record Q4 net profit $16.0 billion and revenue $33.7 billion, above expectations.
- 7-nm and smaller nodes made up 77.0% of wafer revenue; 3-nm exceeded 25.0%.
- Raised 2025 capex to $40-42 billion and outlined $165 billion U.S. factory commitment.
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TSMC earnings on Jan. 15, 2026 showed Taiwan Semiconductor Manufacturing Co. posted a record quarterly profit as surging demand for AI-server chips pushed advanced-node wafers to a dominant share. This strained capacity and supported plans for increased capital spending and U.S. factory expansion.
Record Quarter and Advanced-Node Mix
TSMC reported net profit of $16.0 billion in the fourth quarter, a 35.0% year-over-year increase that marked its eighth consecutive quarter of annual profit growth and beat analyst estimates. Revenue reached $33.7 billion, up 20.5% year-over-year and above expectations while remaining within the company’s guidance. Full-year 2025 revenue rose 31.6% to $121.3 billion.
Advanced chips measuring 7 nanometers or smaller accounted for 77.0% of wafer revenue, driven by AI-server demand. High-performance computing was the largest revenue contributor, while smartphone chips made up 32.0% of revenue, up from 30.0% in the prior quarter. Products using the 3-nanometer process generated more than 25.0% of wafer revenue.
Capital Spending and U.S. Expansion
TSMC raised its 2025 capital expenditures to $40–42 billion and plans to invest NT$450–500 billion in Taiwan in 2026 to build new fabs and expand packaging capacity. The company has committed $165 billion for U.S. factories in Arizona, preparing more than five facilities focused on logic chips for Nvidia and AMD AI applications and packaging. This expansion aligns with Taiwan-U.S. trade talks aiming to reduce tariffs on chips from 20% to 15%.
Industry forecasts project continued revenue growth driven by AI server accelerators and advanced nodes. One research firm expects 25.0–30.0% revenue growth in 2026 in U.S. dollar terms, while other models forecast about 30.0% growth. Some projections see TSMC’s revenue exceeding $300 billion by 2030.
An earnings call to discuss first-quarter and full-year 2026 guidance is scheduled for 1:00 a.m. ET on Jan. 15, 2026. The quarter’s results and expanded investment plans reflect AI-server demand driving capacity commitments that will shape TSMC’s multi-year expansion.
