The artificial intelligence frenzy sweeping the tech world has turned Taiwan’s TSMC into one of the biggest winners of 2025.
The semiconductor powerhouse announced a dramatic revenue surge for the third quarter, far exceeding analyst forecasts and reaffirming its dominance in the global chipmaking industry.
For the three months through September, the company generated roughly $32.5 billion in sales – a 30% jump from the same period last year. The figure sits comfortably within TSMC’s own guidance range and above projections compiled by market analysts, highlighting the explosive growth in demand for AI-driven computing hardware.
Unlike the pandemic era, when laptops and smartphones fueled chip demand, today’s momentum comes from artificial intelligence. TSMC’s advanced manufacturing processes power the most sought-after components behind AI applications, particularly those used in Nvidia’s graphics processors and Apple’s custom silicon.
The company’s strong financial showing reflects a broader shift in the global semiconductor landscape: consumer tech demand has cooled, but investment in high-performance computing has taken off. Factories that once supplied chips for everyday gadgets are now producing silicon for massive data centers and machine learning infrastructure.
Investors have taken notice. TSMC’s shares, listed in Taipei, have rallied 34% this year – nearly doubling the performance of the broader Taiwanese stock index. The market’s confidence rests on TSMC’s unmatched ability to produce cutting-edge chips that no competitor can match at scale.
Full quarterly results are set to be released on October 16, when executives are expected to update revenue and margin guidance for the remainder of the year. Analysts anticipate continued strength into the next quarter, driven by sustained AI investment and orders from top U.S. tech firms.
Meanwhile, the AI-driven semiconductor boom has benefited more than just TSMC. Foxconn, Nvidia’s largest manufacturing partner and the world’s biggest contract electronics producer, reported record-breaking quarterly revenue as global demand for AI servers accelerates.
TSMC’s latest performance signals a new chapter for the chip industry – one where artificial intelligence, not smartphones, dictates the rhythm of global production.
