TSMC raises revenue forecast, betting on the global AI boom
Taiwan Semiconductor Manufacturing Co. (TSMC) has revised its 2025 revenue growth forecast upward to 35%, marking the second upward adjustment this year. The company is betting on sustained global investment in artificial intelligence despite geopolitical tensions and trade restrictions.
TSMC, the world’s largest contract chipmaker and a key partner to Apple and Nvidia, reported a 39% jump in net profit to NT$452.3 billion ($14.8 billion) in the Q3, exceeding analyst expectations. The record performance was driven by strong demand for AI infrastructure chips, from OpenAI’s data centers to Oracle’s cloud solutions.
The company raised the lower end of its annual capital expenditure target to $40 billion, primarily for expanding production capacity and upgrading advanced process technologies.
The global semiconductor industry faces uncertainty from the U.S. AI chip export restrictions and China’s limits on rare earths. Yet rising demand for AI components appears to outweigh these challenges.
The global semiconductor industry faces uncertainty from the U.S. AI chip export restrictions and China’s limits on rare earths. Yet rising demand for AI components appears to outweigh these challenges.
“The AI demand actually continues to be very strong, stronger than we thought three months ago.,”said TSMC Chairman C.C. Wei during the earnings call.
TSMC is the primary beneficiary of the global AI boom, controlling over 90% of advanced chip manufacturing. Since July, its market capitalization has risen by $260 billion. Analysts expect that growing demand will allow TSMC to raise chip prices by 5-10% in 2026.
Despite potential slowdowns in tech, the company believes the ‘age of AI’ is just beginning, with TSMC as its manufacturing backbone.
