TSMC’s 2025 Revenue Up 35.9% to $122.4B, Plans $52–56B Capex
TSMC’s 2025 revenue rose 35.9% to $122.4 billion and diluted EPS gained 46.4%, with gross margins above 60% on surging AI and advanced-node demand. The company forecasts $52–56 billion 2026 capex to expand fab capacity, even as shares slid over 7% on geopolitical tensions and ETF rebalancing outflows.
1. 2025 Financial Results
In 2025, TSMC posted net revenue of $122.42 billion, a 35.9% increase, and achieved a 46.4% rise in diluted EPS, driven by strong demand for AI accelerators and advanced process nodes, which also supported gross margins above 60%.
2. 2026 Capex Strategy
TSMC plans to invest $52–56 billion in 2026 capex, targeting expanded capacity for cutting-edge 3nm and below process technologies and new fabs in Taiwan and abroad to meet accelerating AI-driven chip requirements.
3. Market Headwinds and Investor Moves
Shares dipped over 7% following regional geopolitical tensions that raised energy supply chain concerns, while the ALPS SMR ETF replaced TSMC with Broadcom, reflecting sector rotation and thematic shifts in technology allocations.