TSMC 2025 earnings call

TSMC used its earnings call for the fourth quarter of 2025 to deliver one of its most bullish outlooks in years, arguing that artificial intelligence (AI) is reshaping the semiconductor industry's growth trajectory rather than inflating a short-lived bubble.

TSMC closed 2025 with a fourth quarter that again exceeded its own guidance, reporting revenue of US$33.7 billion and a gross margin of 62.3%. The results underscored the company's execution strength at advanced nodes, but management spent little time dwelling on the past. Instead, the discussion quickly shifted to the sustainability of AI demand and the scale of investment required to support it.

DIGITMES Asia provides basic users with unlimited access to toll-free articles. Sign up for free subscription now to continue your reading!

Subscribe Now

IN THE NEWS

Friday 16 January 2026

Commentary: TSMC's unstoppable momentum faces one wild card

Record profits. Soaring margins. Relentless demand. TSMC's January 15, 2026, earnings call painted a picture of semiconductor dominance so complete it seems almost untouchable. Alm...

Friday 16 January 2026

US cuts Taiwan tariffs to 15%, ties relief to US chip factory expansion

The US and Taiwan reached a trade agreement on January 15, 2026 (US time), cutting reciprocal tariffs on most Taiwanese goods from 20% to 15% without stacking them onto existing most-favored-nation...

Friday 16 January 2026

South Korea seeks matching US tariff breaks after Taiwan's chip pact agreement

South Korean industry and government officials are monitoring a new trade agreement between the US and Taiwan that links semiconductor...

Friday 16 January 2026

TSMC predicts rising advanced process costs; consumer SoCs may struggle to keep up

At its earnings call on January 15, 2026, TSMC signaled that its capital expenditures for 2026 will increase to US$52-56 billion, far exceeding market expectations. On top of demand...

Friday 16 January 2026

Breaking down the strategic implications of the 15% tariff framework of the US-Taiwan trade deal

The United States and Taiwan formalized a significant trade and investment agreement on January 15, 2026, establishing a new framework for bilateral...

Thursday 15 January 2026

In depth: Why TSMC believes AI demand justifies record capex and long-term risk

TSMC used its earnings call for the fourth quarter of 2025 to deliver one of its most bullish outlooks in years, arguing that artificial...

Thursday 15 January 2026

TSMC forecasts nearly 30% revenue growth in 2026 as AI drives strong margins and capex surge

TSMC held its earnings conference call on January 15, 2026, and guided for the first quarter. The company expects revenue to range between US$34.6–35.8 billion. Gross margin...

Thursday 15 January 2026

TSMC retains pricing power using Apple and AI dual structure

Generative AI is reshaping TSMC's customer structure. While Apple remains TSMC's largest single customer by revenue share, the rapid growth of high-performance computing (HPC) businesses...

Thursday 15 January 2026

TSMC's 4Q25 revenue surges 20.5% on advanced process demand

Taiwan Semiconductor Manufacturing Company (TSMC) reported consolidated revenue of approximately NT$1.4609 trillion (US$46.21 billion) and net income after tax of about NT$505.74 billion...

Wednesday 14 January 2026

TSMC turns Arizona gamble into goldmine as suppliers ride 10-year wave

After five years of struggling with double construction timelines and billion-dollar regulatory hurdles, TSMC has quietly transformed its Arizona operations into a profit engine, and...

Wednesday 14 January 2026

Commentary: TSMC's costly US plant gamble unfolds; rising investment and challenges await

TSMC announced plans in 2020 to establish an advanced wafer fab in the US, marking a major shift toward significant US investments. Initially seen as a political necessity, TSMC's...