TSMC announced a consolidated revenue of NT$1,046.09 billion for the fourth quarter of 2025.
Year-on-year, its fourth-quarter revenue increased by 20.5%. Compared with the third quarter of 2025, revenue increased 5.7%.
In US dollars, fourth-quarter revenue reached $33.73 billion, representing a 25.5% year-on-year increase and a 1.9% sequential increase. This marks the eighth consecutive quarter of year-on-year profit growth. The company has said strong demand for semiconductors used in artificial intelligence applications have supported a forecast-beating 35% increase in fourth-quarter profit.
Advanced process technologies continue to dominate the revenue mix. In the fourth quarter, 3-nanometre shipments accounted for 28% of total wafer revenue, 5-nanometre accounted for 35%, and 7-nanometre accounted for 14%. Advanced technologies, defined as 7-nanometre and below, represented 77% of total wafer revenue.
“Our business in the fourth quarter was supported by strong demand for our leading-edge process technologies,” said Wendell Huang, Senior VP and Chief Financial Officer of TSMC. “Moving into first quarter 2026, we expect our business to be supported by continued strong demand for our leading-edge process technologies.”
Fuelled by sustained AI-related demand, TSMC stated that capital expenditure for 2026 is expected to range between $52 and $56 billion, compared with $40.9 billion in 2025. The guidance pointed to continued infrastructure investment despite concerns around a potential slowdown in AI spending.
Commenting on the results, Kate Leaman, Chief Market Analyst at AvaTrade, said: “TSMC’s Q4 smash results are more than just a strong earnings print, they are a signal that the AI cycle is transitioning from purely narrative to infrastructure. The combination of record revenue, surging profits and its mix of advanced nodes underscores that TSMC has become the go-to operating system for AI compute.
“For TSMC itself, this quarter reinforces three themes: pricing power in leading-edge nodes, growing visibility on multi year AI capex from hyperscalers and chip designers, and a gradual broadening of demand beyond data centres into AI at the Edge. The key question now is not whether AI sustains growth, but how TSMC sequences its global capacity build out and capital intensity without diluting returns.
“For the wider AI chip ecosystem, these numbers crystallise a hierarchy. Designers with access to TSMC’s most advanced processes can make the most of their advantage, while laggards face structurally higher barriers to entry and longer time to market. At the same time, the earnings highlight latent fragilities, including geopolitics, export controls and the concentration of leading edge manufacturing in a handful of geographies remain the industry’s unresolved tail risks.”
Why is TSMC’s revenue so interesting? Read more on our sister title, Electronic Specifier.
