The TSMC emblem is displayed on a constructing in Hsinchu, Taiwan April 15, 2025.
Ann Wang | Reuters
Taiwan Semiconductor Manufacturing Co. on Thursday reported a 39.1% improve in third-quarter revenue from final yr, beating estimates and hitting a contemporary file as demand for synthetic intelligence chips stayed sturdy.
Listed below are the corporate’s outcomes versus LSEG SmartEstimates:
- Income: 989.92 billion New Taiwan {dollars} ($33.10 billion) vs. NT$977.46 billion anticipated
- Web revenue: NT$452.3 billion, vs. NT$417.69 billion
TSMC’s income within the September quarter rose 30.3% from a yr in the past to NT$989.92 billion, additionally beating estimates. Web revenue elevated 13.7% from final quarter, which had marked a file excessive on the time.
As Asia’s largest expertise firm by market capitalization, TSMC has benefited from the factitious intelligence increase, producing superior AI processors for purchasers reminiscent of Nvidia and Apple.
“Latest developments in AI market proceed to be very constructive,” TSMC CEO C.C. Wei stated on an earnings name, including that growing adoption of AI fashions by shoppers has led to extra demand for compute, and by extension, semiconductor merchandise. “Thus, our conviction within the AI megatrend is strengthening,” he added.
Bolstered by this AI energy, Wei stated the corporate had raised its 2025 income progress forecast to the mid-30% vary. In July, the corporate had anticipated full-year income progress of about 30%.
TSMC additionally elevated its anticipated flooring for capability growth and upgrades to $40 billion for the total yr, up from a earlier flooring of $38 billion.
Chopping-edge chips
TSMC’s high-performance computing division, which encompasses synthetic intelligence and 5G functions, made up the vast majority of gross sales within the July-September quarter, accounting for 57% of income.
TSMC stated superior chips, with sizes 7-nanometer or smaller, accounted for 74% of TSMC’s whole wafer income within the quarter.
In semiconductor expertise, smaller nanometer sizes signify extra compact transistor designs, which result in higher processing energy and effectivity.
Development in TSMC’s most superior chips significantly drove income features within the third quarter, based on Counterpoint Analysis senior analyst William Li.
“TSMC’s strong earnings are a direct reflection of the sturdy traction at 3nm in addition to excessive utilization at 4/5nm – each of that are being pushed by ongoing orders from AI GPU and HPC clients and premium smartphone platforms,” Li advised CNBC in a press release.
TSMC executives additionally stated Thursday that they had been monitoring U.S. tariff developments as Taiwan negotiates for a decrease “reciprocal” price and Washington weighs industry-specific duties on semiconductors. Nonetheless, TSMC is more likely to obtain some exemptions.
“We perceive there are uncertainties and dangers from the potential impression of tariff insurance policies, particularly in consumer-related and price-sensitive market segments,” Wei stated, including that the corporate would proceed to observe and plan for any impression.
TSMC has been investing closely in services within the U.S. — spending that might assist cut back its publicity to tariff impacts.
Shares of TSMC in Taiwan have risen greater than 38% to this point this yr.
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