The chipmaking giant said it now expects 2025 revenue to grow by the mid-30% range in U.S. dollar terms, up from around 30% previously projected, as demand for AI chips continues to accelerate. It maintained its capital spending target of up to $42 billion for the year.
“AI demand actually continues to be very strong — even stronger than we thought three months ago,” said C.C. Wei, TSMC’s Chief Executive Officer, during an earnings call on Thursday. “We are also happy to see continuous strong outlook from our customers. In addition, we directly receive very strong signals from our customers’ customers requesting the capacity to support their business. Thus, our conviction in the AI megatrend is strengthening.”
The company’s upbeat forecast comes amid a flurry of mega-deals between AI developers and chipmakers, including OpenAI’s recent partnerships with Nvidia, AMD, and Broadcom, to build out data centre capacity projected to surpass $1 trillion. Those plans signal growing demand for TSMC’s cutting-edge chips, which form the backbone of AI infrastructure.
Despite fears of an overheating market reminiscent of the early-2000s dotcom bubble, TSMC’s results — along with recent earnings from other tech firms — indicate AI-related spending remains resilient. Executives across industries, from infrastructure to asset management, continue to project long-term growth in data centre development.
Record-Breaking Profit
For the July–September quarter, TSMC reported a 39.1% surge in net profit to T$452.3 billion ($14.76 billion), far exceeding analyst expectations of T$417.7 billion, according to LSEG SmartEstimates. The strong performance was driven by soaring demand for advanced chips used in AI systems, smartphones, and high-performance computing devices.
Wei noted that demand for leading-edge semiconductors remains robust, adding that the company is “working very hard to narrow the gap” between global chip demand and its production capacity. He also said TSMC would continue to plan cautiously going into 2026 to balance growth with market uncertainty.
Navigating Trade and Geopolitical Risks
TSMC’s growth comes amid renewed uncertainty over U.S.–China trade tensions and potential tariffs on semiconductors under Donald Trump’s proposed trade policies. However, Wei played down the risks, saying that even if access to the Chinese market were limited, AI-driven growth globally would still be “very dramatic.”
Earlier this year, TSMC announced a $100 billion investment partnership with Trump at the White House, expanding its U.S. manufacturing footprint. This follows $65 billion in investments already pledged for three fabrication plants in Arizona, one of which is now operational.
Broader Industry Momentum
TSMC’s bullish tone echoes optimism across the semiconductor industry. On Wednesday, chip equipment supplier ASML reported better-than-expected third-quarter bookings, while Samsung Electronics forecast its biggest profit in more than three years, citing the same AI-driven surge in demand.
So far in 2025, TSMC’s Taiwan-listed shares have risen 38%, outperforming the broader market’s 20% gain. The company’s performance underscores its central role in powering the global AI revolution — and its growing influence in shaping the future of high-performance computing.