Key takeaways TSMC reported fourth-quarter net income of NT$505.74 billion, beating analyst expectations and setting a new record. Fourth-quarter revenue reached NT$1.046 trillion, up 20.5% year over...
The world's largest contract chipmaker posted net income of NT$505.74 billion for the October-December period, compared to analyst expectations of NT$478.37 billion.
Revenue for the quarter reached NT$1.046 trillion (approximately $33.09 billion), surpassing the forecasted NT$1.034 trillion.
The results demonstrate TSMC's continued dominance in the semiconductor manufacturing industry, particularly in advanced AI processors.
The company's gross margin for the fourth quarter reached 62.3%, significantly higher than the expected 60.6%.
Operating profit came in at NT$564.9 billion, beating estimates of NT$527.23 billion, while the operating margin stood at 54%, above the forecasted 50.9%.
TSMC's performance has been bolstered by full utilization of its 3-nanometer manufacturing capacity, driven by demand for AI chips and high-end smartphone processors.
The company manufactures advanced chips for major technology companies, including Nvidia and Apple, which together likely account for over 40% of TSMC's revenue.
For the full year 2025, TSMC reported consolidated revenue of NT$3.81 trillion, representing a 31.6% increase from the previous year's NT$2.89 trillion.
The company's capital expenditure for 2025 totaled $40.9 billion, reflecting significant investments in expanding manufacturing capacity.
TSMC's stock performance has mirrored its operational success, with shares gaining 44.2% over the past year in Taipei trading, substantially outperforming the broader market's 25.7% rise.
The company's market capitalization has reached approximately $1.4 trillion, making it Asia's most valuable listed company and more than double that of South Korean rival Samsung Electronics.
Research firm IDC expects TSMC's revenue to grow between 25% and 30% in 2026, citing booming demand for AI server accelerators and significant contributions from the company's next-generation 2-nanometer node technology.
The chipmaker is also investing $165 billion to build manufacturing facilities in Arizona, further expanding its global footprint.
The earnings call, held Thursday at 1:00 a.m. Eastern Time, provided investors with updated guidance for the first quarter of 2026 and the full year ahead.
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