Taiwan Semiconductor Manufacturing Company (TSMC), the world’s leading chip manufacturer, ended the fourth quarter of 2025 with results that surpassed market expectations. The company’s growth reflects the strong demand for semiconductors used in artificial intelligence (AI) applications, now a central force driving the entire tech industry.
This trend continues from previous quarters, where AI-related demand offset the slowdown in consumer electronics — a sector that had seen abnormal growth during the pandemic. Key clients like NVIDIA and Apple remain pillars of TSMC’s business model.
Record Revenues in the Fourth Quarter of 2025
Between October and December 2025, TSMC reported revenues of 1.046 trillion New Taiwan dollars — around $33.11 billion at current exchange rates. This marks a 20% increase compared to the same period last year, when revenue reached 868.46 billion NT dollars.
The result exceeded analyst estimates compiled by LSEG, which predicted revenues of 1.036 trillion NT dollars (just under $32 billion). The figure also aligns with TSMC’s guidance issued last October, which forecasted between $32.2 billion and $33.4 billion in U.S. dollars for the quarter.
According to CEO Che-Chia Wei, the strong performance was primarily driven by demand for advanced chips used in data centers and AI computing systems. This segment more than compensated for weaker orders from tablets and other consumer electronics, which had previously benefited from an exceptional pandemic-era boom.
AI Demand Fuels TSMC’s Market Dominance
TSMC will publish its full Q4 2025 financial report on January 15. The company is expected to share updates on its short-term outlook and long-term strategy, including investment plans and revenue growth forecasts — data that investors and analysts are eagerly awaiting.
On the stock market, TSMC shares closed 2025 up 44.2%, outperforming Taiwan’s benchmark index, which grew by 25.7%. This reflects investor confidence in TSMC’s ability to benefit from the structural expansion of AI.
Similar signals are coming from Foxconn, the world’s largest electronics manufacturer and a key partner of NVIDIA in server production. Foxconn reported fourth-quarter sales of 2.603 trillion NT dollars, approximately $82.20 billion. Meanwhile, the PC market continues to struggle — sales are expected to fall by 9% in 2026 due to a decline in memory chip demand.
