Taiwan Semiconductor Manufacturing Company, the world's largest contract chipmaker, reported record-breaking fourth-quarter 2025 financial results on January 15, 2026. The company's net income surged 35 percent year-over-year to NT$505.74 billion, equivalent to approximately $16 billion, while consolidated revenue rose 20.5 percent to NT$1,046.09 billion.
The exceptional performance was driven primarily by soaring demand for artificial intelligence chips. Chief Executive Officer C.C. Wei noted that the shift from mobile-centric growth to high-performance computing demand is now complete, with the HPC segment representing 58 percent of the company's total revenue and officially surpassing smartphones as the firm's primary growth engine.
Advanced chips made using cutting-edge manufacturing processes accounted for 74 percent of revenue in 2025, up from 69 percent the previous year. Wei addressed investor concerns about the sustainability of AI demand directly, stating that AI is real and disclosing that he had spent months personally verifying demand forecasts with global cloud computing giants including major technology companies.
Looking ahead to 2026, TSMC dramatically raised its capital expenditure guidance to between $52 billion and $56 billion, signaling an aggressive bet on the long-term sustainability of the artificial intelligence infrastructure boom. The company's guidance for the first quarter of 2026 projects revenue between $34.6 billion and $35.8 billion, with gross margins expected to reach 63 to 65 percent.
The market reacted swiftly to the announcement, with TSMC shares climbing over 6 percent in the sessions following the report. European lithography equipment maker ASML also saw its stock jump 7 percent as investors anticipated a surge in new equipment orders. TSMC has been expanding its global manufacturing footprint with major projects in Japan, Europe, and Arizona, where Wei confirmed the company recently purchased additional land to support new fabrication facilities.