TSMC Exceeded Expectations and Made Strong Profit Predictions for 2025.

TSMC Reports Record Profit and Rising Expectations

Taiwan's leading semiconductor manufacturing company TSMC has surpassed market forecasts in capital expenditures and revenue expectations, driven by a strengthening global demand for artificial intelligence.

Capital Expenditure Expectations

The company announced that it anticipates capital expenditures of 52-56 billion dollars for the year 2025. This figure is expected to show at least a 25% increase compared to the previous year.

Growth Projections

TSMC stated that it expects approximately 30% growth in its revenues in 2026. This forecast is above analysts' average projections.

Financial Performance

In the December quarter, TSMC's net profit surpassed market expectations, reaching 505.7 billion Taiwan dollars (about 16 billion US dollars). Additionally, the company's annual revenue exceeding 100 billion dollars for the first time also drew attention.

Market Dynamics and Risk Factors

This strong outlook from the company is seen as a development parallel to the demand for artificial intelligence accelerators being maintained by firms like Nvidia and AMD. Meanwhile, investments in data centers by major tech companies like Meta and Amazon are also expected to support demand in the sector.

Future Investments

However, supply constraints for high-bandwidth memory chips and weakness in the smartphone market are recorded as risk factors in TSMC's medium-term outlook. The company aims to increase global production capacity with investments in the US, Japan, and Germany.