The boom in artificial intelligence continues to reshape the global technology landscape. Among the companies benefiting the most from this surge is TSMC, the world’s leading contract chip manufacturer, which reported a strong increase in revenue for the third quarter of 2025, exceeding expectations.
The rising demand for components used in AI-based applications has offset the slowdown in the consumer electronics market—such as smartphones and tablets—which is still stabilizing after the pandemic-driven growth years. This has led to solid financial performance, strengthening TSMC’s position as a key supplier for tech giants like Nvidia and Apple.
Strong Financial Results in Q3 2025
Between July and September, TSMC recorded revenue of 989.92 billion New Taiwan dollars, equivalent to about $32.47 billion, a 30% increase from NT$759.69 billion ($23.5 billion) during the same quarter in 2024. This figure even surpassed analysts’ expectations, which were around NT$973.26 billion.
The company had earlier provided guidance ranging between $31.8 and $33 billion USD for the quarter, and the actual results fell right in the middle of that range. TSMC will announce its full financial results on October 16, along with updated forecasts for the final quarter of the year and the full fiscal year.
AI Infrastructure Drives Growth
The company’s growth was mainly driven by strong orders related to the expansion of AI infrastructure—a segment where TSMC plays a crucial role as the main supplier of Nvidia’s GPUs and Apple’s processors. The surge in demand for AI chips more than offset the decline in consumer-oriented products, a market that had boomed during the pandemic but is now stabilizing.
On the financial markets, TSMC shares listed in Taipei have risen 34% since the beginning of the year, well above the 18.5% growth of the broader Taiwan Stock Exchange index. This performance reflects investor confidence in the company’s ability to maintain its competitive edge in a rapidly evolving and highly concentrated industry.
TSMC’s growth is part of a broader expansion within Taiwan’s technology sector. Foxconn, the world’s largest electronics manufacturer and Nvidia’s leading server supplier, also posted record results in the third quarter, achieving the highest revenues in its history.
