TSMC Achieves Historic Profit Milestone

(MENAFN) Taiwan Semiconductor Manufacturing Company (TSMC) recorded a fresh all-time high in quarterly earnings during the final three months of last year, as net income climbed 35% compared with the same period a year earlier, driven largely by robust demand for artificial intelligence (AI) semiconductors.

The Taiwan-based manufacturing leader reported profits of 505.74 billion new Taiwan dollars, equivalent to about $16.2 billion, for the October–December timeframe, based on the company’s financial disclosure issued on Thursday.

With this performance, the world’s biggest pure-play contract chip producer has now delivered annual profit expansion for eight straight quarters, underscoring sustained momentum across its core businesses.

Quarterly sales also saw a notable increase, rising 20.5% year on year to reach $33.13 billion in the fourth quarter, reflecting strong customer demand across multiple end markets.

Both earnings and revenue for the final quarter of 2025 surpassed analysts’ forecasts, exceeding prevailing market expectations.

During an earnings call, company leadership projected current-quarter revenue to range between $34.6 billion and $35.8 billion, representing a 4% increase from the previous quarter or a 38% jump year on year at the midpoint of the guidance.

In the October–December period, high-performance computing — a category encompassing 5G and AI-related uses — accounted for 55% of total revenue, while smartphone-related demand contributed 32% of overall sales.

TSMC also noted that 77% of wafer-based revenue during the quarter was generated from advanced semiconductor technologies measuring 7 nanometers or below. On a full-year basis, these cutting-edge chips made up 74% of total revenue in 2025, compared with 69% in 2024.

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