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AI Chips · Earnings · Semiconductors · TSMC
TSMC reported a record fourth-quarter net income of NT$505.74 billion, a 35% year-over-year jump, significantly beating analyst estimates, driven by robust demand for advanced AI processors and high-performance computing.
Revenue reached NT$1.046 trillion ($33.73 billion), exceeding expectations and marking a 20.5% year-over-year increase. High-performance computing, including AI and 5G applications, now constitutes 55% of quarterly sales, surpassing smartphones at 32%.
Advanced chips (7-nanometer or smaller) comprised 77% of wafer revenue, up from 69% in 2024, indicating a rapid shift to cutting-edge technology. TSMC projects capital expenditure of $52-56 billion in 2026, a 27-37% increase from $40.9 billion in 2025, to scale 2nm production globally.
The company forecasts current-quarter revenue of $34.6 billion to $35.8 billion, representing 38% year-over-year growth at the midpoint. CFO Wendell Huang noted climbing profit margins due to pricing power in advanced chip capacity.
Chairman C.C. Wei acknowledged risks from global tariff policies and potential memory shortages impacting smartphone/PC demand, but emphasized focus on high-end devices and global expansion to mitigate these.
