TSMC Delivers Record Q4 Profit as AI Demand Drives Seventh Straight Quarter of Double-Digit Growth

Taiwan’s chipmaking giant reported record earnings as artificial intelligence demand, advanced-node expansion and high-performance computing orders continued to power growth.

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Taiwan Semiconductor Manufacturing Co. (TSMC) posted record fourth-quarter net profit, extending a streak of strong earnings as demand for AI-related chips remained robust.

Net profit rose 35% from a year earlier to TWD 505.7 billion (about USD 16 billion), marking the company’s seventh consecutive quarter of double-digit annual profit growth.

Revenue climbed to TWD 1.046 trillion, increasing more than 20% from the same period last year and reinforcing TSMC’s dominant position at the centre of the global semiconductor supply chain.

The world’s largest contract chipmaker said growth was driven by sustained orders for artificial intelligence processors, high-performance computing products and continued expansion of advanced manufacturing capacity.

Major technology clients have accelerated investment in AI infrastructure, boosting demand for leading-edge chips used in data centres, cloud computing and next-generation consumer devices.

Despite concerns over US trade policy and potential tariff increases on semiconductor-related products, TSMC said external risks have not materially disrupted current momentum.

Management forecast 2026 capital expenditure of USD 52 billion to USD 56 billion as the company continues expanding capacity in Taiwan, the United States and overseas markets.

For the first quarter of 2026, TSMC projected revenue between USD 34.6 billion and USD 35.8 billion, with gross margins of 63% to 65% and operating margins of 54% to 56%.

The company also said long-term gross margins above 56% remain achievable, reflecting pricing power and strong demand for advanced-node manufacturing.

Executives reiterated that US dollar-denominated revenue could rise close to 30% in 2026, although management maintained a cautious tone on tariffs and geopolitical uncertainty.

TSMC remains widely viewed as one of the clearest corporate beneficiaries of the global AI investment cycle, with its earnings closely watched as a barometer for semiconductor demand worldwide.

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