TSMC's Q4 profit hits record high on AI chip demand
What's the story
Taiwan Semiconductor Manufacturing Company (TSMC), the world's main producer of advanced artificial intelligence (AI) chips, has reported a record-breaking net profit for the October-December quarter. The company's net profit surged to T$505.7 billion ($16 billion), marking its seventh consecutive quarter of double-digit growth. The stellar performance was driven by the booming demand for cutting-edge chips used in AI applications.
Financial performance
TSMC's profit surpasses market expectations
TSMC's fourth-quarter profit saw a massive 35% jump, easily beating market expectations. The company's profit far exceeded the T$478.4 billion estimate based on predictions from 20 analysts. Despite uncertainties stemming from Trump's trade policies and potential semiconductor tariffs, the global chip industry continues to thrive on the back of the AI boom, with companies like TSMC reaping substantial profits.
Investment strategy
TSMC's capital expenditure and future plans
In 2025, TSMC's capital spending reached $40.9 billion, within the company's earlier forecast of $40-42 billion. The company also announced a massive $100 billion investment in the US last year, alongside a $65 billion commitment for three plants in Arizona. One of these facilities is already operational. US Secretary of Commerce Howard Lutnick recently revealed that TSMC plans to increase its investments in America.