Taiwan’s TSMC Reports Record USD16.2B Profit on AI Chip High Demand

(MENAFN) Taiwan Semiconductor Manufacturing Company (TSMC) reported a staggering surge in profits for the fourth quarter of 2025, fueled by soaring demand for artificial intelligence (AI) chips. Earnings jumped 35% year-on-year, hitting a record 505.74 billion new Taiwan dollars ($16.2 billion), according to the company’s financial results released Thursday.

The world’s largest contract chipmaker has now recorded year-over-year profit growth for eight straight quarters. Revenue for the October-December period climbed 20.5% from a year earlier, reaching $33.13 billion, surpassing market expectations.

Looking ahead, TSMC executives forecast sales for the current quarter between $34.6 billion and $35.8 billion during an earnings call, signaling a 4% sequential increase and a 38% jump compared with the same period last year.

In the October–December quarter, the company’s high-performance computing segment—including 5G and AI applications—accounted for 55% of total sales, while smartphone demand contributed 32%.

Highlighting its technology leadership, TSMC said 77% of wafer revenue in the quarter came from advanced chips 7-nanometer or smaller. For the full year 2025, these advanced chips represented 74% of total sales, up from 69% in 2024.

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