TSMC Q4 profit reached a record level as demand for artificial intelligence chips surged at the end of 2025. The world’s largest contract chipmaker reported results that exceeded market expectations. Strong orders from data center and high performance computing customers drove the gains.
TSMC Q4 profit driven by AI chip demand
The company reported net profit of about NT$505.7 billion for the October to December quarter. This marked a year on year increase of roughly 35 percent. Quarterly revenue surpassed NT$1 trillion for the first time in TSMC’s history. Growth was largely supported by strong demand for advanced chips used in AI servers and data centers.
TSMC supplies leading technology firms such as Nvidia and Apple. These customers rely on TSMC’s most advanced manufacturing processes. High utilization of leading edge nodes contributed to improved pricing and profitability during the quarter.
Revenue mix and advanced manufacturing
Advanced technologies accounted for a large share of total revenue. Chips made using 5 nanometer and smaller processes continued to dominate sales. AI related products increased the share of high margin output. TSMC said high performance computing applications remained the main growth engine.
The company also benefited from stable demand in smartphones and other consumer electronics. However, AI workloads delivered the strongest contribution to revenue growth.
Capital spending and expansion plans
TSMC raised its capital expenditure outlook for 2026. The company now expects to spend between $52 billion and $56 billion. The investment will support capacity expansion and development of next generation process technologies. New fabrication plants and equipment upgrades are planned to meet continued AI driven demand.
Market reaction and outlook
The results reinforced TSMC’s position as a critical supplier in the global semiconductor industry. Semiconductor stocks and equipment makers rose following the earnings release. Analysts expect AI related demand to remain strong through 2026, supporting further revenue growth.
TSMC said it will continue focusing on advanced manufacturing leadership and capacity discipline. The company highlighted sustained customer demand for high performance chips.
TSMC Q4 profit underscored how artificial intelligence is reshaping the semiconductor market. Record earnings and revenue reflected strong customer demand and ongoing investment in advanced chip production.
Source: https://www.cnbc.com/2026/01/15/tsmc-q4-profit-record-ai-chip-demand-nt1-trillion.html
