TSMC sees no signs of the AI boom slowing

"Taiwanese chipmaking giant TSMC has posted huge growth, says more is on the way as the AI boom is not abating, but also pointed to the inevitability of price rises for its output. The company yesterday announced Q4 2025 revenue of $33.7 billion, up 25.5 percent from last year's Q4. Full year revenue landed at $122.5 billion, up 36 percent compared to the previous year. Execs forecast $34 to $35.8 billion revenue for Q1 2026, and 30 percent revenue growth across FY 2026."

""Looking ahead, we observe increasing AI model adoption across consumer, enterprise and sovereign AI segments," Chairman and CEO C.C. Wei told investors. "This is driving need for more and more computation, which supports the robust demand for leading-edge silicon. Our customers continue to provide us with a positive outlook," he added. Wei said TSMC's customers typically engage with it two or three years before production, suggesting they see years more of heavy demand for AI infrastructure. "In addition, our customers' customers, who are mainly the cloud service providers, are also providing strong signals and reaching out directly to request the capacity to support their business," the CEO said. "Thus, our conviction in the multiyear AI megatrend remains strong, and we believe the demand for semiconductors will continue to be very fundamental.""

TSMC reported Q4 2025 revenue of $33.7 billion, up 25.5% year-over-year, and full-year revenue of $122.5 billion, up 36% year-over-year. Executives forecast $34–$35.8 billion for Q1 2026 and expect 30% revenue growth across FY 2026. CEO C.C. Wei noted rising AI model adoption across consumer, enterprise and sovereign segments driving greater computation needs and strong demand for leading-edge silicon, with customers engaging years ahead and cloud providers requesting capacity. CFO Jen-Chau Huang said TSMC spent $101 billion on capex over the last three years, expects $52–$56 billion in 2026, will allocate 70–80% to advanced nodes (7nm and smaller), and warned that higher generation costs will require price increases for finished products.

Read at Theregister