Taiwan Semiconductor Manufacturing Co. reported fourth-quarter revenue of T$1,046.08 billion (approximately $33.05 billion), surpassing consensus forecasts by 6%. This marks a 20% year-on-year increase driven by robust demand for AI-related chips. The company’s high-end 5 nanometer node contributed 35% of total wafer revenue, while its advanced CoWoS (Chip-on-Wafer-on-Substrate) packaging business grew 50% sequentially, reflecting strong uptake from major GPU and AI accelerator customers.

TSMC’s utilization rate across its 7 nanometer and more advanced fabs exceeded 95% in Q4, prompting the company to accelerate its capital expenditure plan. Management confirmed that 2 nanometer volume production is fully sold out for 2025 and will double capacity by the end of 2026. Capital spending for the full year is projected at $32–36 billion, up from $25 billion in 2024, with over 60% allocated to advanced nodes and packaging technologies critical for AI workloads.

According to Counterpoint Research, TSMC’s foundry market share reached 72% in Q3 2025. With leading clients such as NVIDIA, Qualcomm and Broadcom running at full capacity, TSMC expects AI chip revenue to account for more than 40% of total sales by 2026. Analysts at Goldman Sachs have raised their revenue growth forecast to 28% for the coming year, citing a potential $1 trillion AI chip market by 2030. The company’s dividend was increased by 20% in Q3 2025, underscoring confidence in sustained cash-flow generation.