Once again, Taiwan Semiconductor Manufacturing Company TSMC asserted its market leadership position, reporting $33.1 billion of revenue in the third quarter, a 30.3% revenue gain year on year. Analysts expected NT$452.3 billion of net income; the company delivered NT$452.3 billion, beating the expectation. 

The driver of the market leap TSMC is experiencing is the big bang of artificial intelligence AI, especially AI 1.0. The company reported a record net income of NT$416.7 billion for the quarter prior. Beating expectations, the firm’s net income grew 39.1% quarter on quarter.

AI drives the $33.1 billion revenue from reporting NT$977.46 billion market territory to NT$989.92 billion. Underlying TSMC dynamics drive the gain, and the overall TSMC performance demonstrates AI’s transformative effects on firm performance.

As leaders in Taiwanese chip manufacturing, TSMC is taking a good share of the AI chip demand. These record-setting results reiterate the case.

Boom in AI Technology Generates Sharp Growth

C.C. Wei, CEO of TSMC, continues to accentuate the significance of artificial intelligence for TSMC’s growth. During Wei’s remarks in the TSMC earnings call, he said, “The recent advancement within the AI market continues to be very positive news.” He pointed out that the wider adoption of AI consumer and business models endlessly reinforced the growing market of ever more powerful computing and advanced semiconductor systems.

Such bullishness allows TSMC to revise up the revenue growth for 2025 to the mid-thirties percentage range from the thirty per cent mark. They also raised the forecast of capital expenditures on capacity expansion and technology to $40 billion from $38 billion.

The performance of TSMC demonstrates the extent to which AI technology is changing the structure of the economy. TSMC is one of the few companies in the world that produces chips for other companies that manufacture advanced technology GPU chips for AI, such as Nvidia, and high-end processors, along with AMD, which is a leading company in the AI hardware market.

High-performance computing is one of the many activities TSMC is engaged in.

TSMC Q3 earnings: Everything you need to know

Driving Income for TSMC

The revenue uplifts from the HCP High Performance Computing segment, which is the most advanced, ever-growing level of computing in the world, also incorporated AI and 5G technology and devices, and added a significantly greater builder, which was the 5G technology, to the services economy. Within the time frame of July to September, the branch with the artificial intelligence and 5G devices generated 57% of computing for TSMC.

TSMC stated that during the quarter, the delicate chips with a 7-nanometre or smaller fabrication process constituted 74% of the revenue from the total wafer shipments. In chip manufacturing, the smaller the nanometer, the more powerful the chip becomes, with faster performance, greater energy efficiency, higher computing, and additional processing benefits, all of which are essential for AI workloads.

Most experts in the field observe that the expansion in revenue for TSMC is mainly due to the increasing supply for its 3-nanometre and 4/5 nanometer class chips.

As stated by William Li, a senior analyst at Counterpoint Research, the strong TSMC earnings are a result of the strong traction at 3nm and high utilization at 4/5nm, both driven by the AI GPU and HPC orders, as well as from premium smartphone platforms.

Concerns regarding Global Trade and US Tariffs

Even with the performance results from TSMC being strong, global political and trade conditions are a potential risk. One of the issues worth noting, that reports suggest Taiwan is lowering the reciprocal rate and is tightening negotiations over US duties for chips.

C.C. Wei recognized that TSMC can pivot in response to the changes, TARIFFS IMPACT CONSUMER AND PRICE SENSITIVE MARKET. He also stated that TSMC is paying a lot on CAPEX for new manufacturing plants in the US, which is a move that might offset the concerns regarding trade disruptions or tariffs.

The rest of the world’s efforts to unclutter the supply chain and reduce the dependence on Taiwan, owing to rising geopolitical issues in the Asia Pacific, align with the goals of TSMC’s expansion in the US.

TSMC Surges to Record Revenue, Profit, and $1.27 Trillion Market Cap Amid AI  Chip Boom - Voronoi

Record Growth Strengthens Industry Leadership

TSMC’s position as the world’s largest contract chip maker and a key constituent of the global technology ecosystem is unquestionable. The company works with enormous tech firms like Apple, Nvidia, AMD and Qualcomm, all of which depend on TSMC to manufacture their most advanced chips.

The latest results of the company point to a clear confirmation of its position with the ongoing AI revolution. AI systems, which require more and more advanced AI chips, currently, TSMC’s semiconductor technology is invaluable.

Shares of TSMC in Taiwan have already risen more than 38% in 2025, which shows what investors think about its growth. Forecasts suggest that this growth will continue with the expansion of AI technologies in a myriad of sectors including cloud computing and consumer electronics.

AI Megatrend Strengthens TSMC’s Future

The 3rd quarter report confirms that AI is now an integral part of TSMC’s growth strategy. TSMC’s capacity to deliver large volumes of advanced chips gives it a strong position in the global semiconductor industry.

The growth of AI systems will greatly increase the demand for advanced processors. TSMC’s investment in manufacturing nodes at 2nm and below will put the company in a great position for the anticipated change.

The statement from the company’s CEO, C.C. Wei, our conviction in the AI megatrend is strengthening, shows the company’s positive outlook for the future. The company itself is strategically focused on the AI megatrend, which is very positive for the forward motion of the company.

Assumption: A quarter with record revenues and earnings, which point to sustained growth

The latest numbers from TSMC are also more than a sign of a prosperous phase. The record revenues in tandem with a 39% profit increase are an indicator of the company and the sector’s growth due to AI.

Considering the company’s investment in the most advanced chipmaking technologies, its irrefutably strong alliances with the most prominent AI companies, and the lack of a concrete strategy regarding the control of risks, the company will still be the leader in the semiconductor industry.

Given the AI embedded systems demand that continues rising, TSMC’s position and ability to serve as the main driver behind that growth is as strong as ever. TSMC’s record-breaking quarter should not only be viewed as showing the company’s success in the past, but can also be regarded as signaling the great accomplishments that lie ahead.


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