Taiwan Semiconductor Manufacturing Co (TSMC), the world’s leading producer of advanced artificial intelligence chips and a key supplier for Nvidia, reported a robust 35% surge in fourth-quarter profits on Thursday, setting a new record and exceeding analyst expectations.
The company saw its net profit rise to NT$505.7 billion for the October-December period, marking its seventh consecutive quarter of double-digit growth amid heightened demand for AI-driven technologies. According to a SmartEstimate from LSEG, which factors in the most reliable analyst forecasts, TSMC had been projected to earn NT$478.4 billion. TSMC’s actual earnings came in substantially ahead of these estimates.
Despite uncertainty stemming from U.S. President Donald Trump’s trade policies and new tariffs on some semiconductors, the global chip industry has so far remained resilient, buoyed by the AI boom that continues to fuel profit growth.
TSMC reported capital expenditure for 2025 reached $40.9 billion, aligning with its prior guidance of $40-42 billion. The chipmaker has also expanded its U.S. footprint, unveiling a $100 billion investment commitment in collaboration with President Trump at the White House in March last year. This pledge adds to a previously announced $65 billion investment for three semiconductor plants in Arizona, with one facility already operational.
U.S. Commerce Secretary Howard Lutnick stated in a podcast released last week that TSMC is preparing for further investments in the United States.
