New Delhi, India, October 16, 2025– Taiwan Semiconductor Manufacturing Co. (TSMC) has delivered a blowout third-quarter performance, posting the highest profit in its history and reaffirming its dominance in the global semiconductor race, as the AI revolution drives demand for cutting-edge chips to new heights.
The world’s largest contract chipmaker reported net income of T$452.3 billion (US$14.76 billion) for the July–September quarter, a staggering 39.1% increase year-on-year. The results not only crushed analyst expectations, which stood at T$417.7 billion according to LSEG SmartEstimate, but also sent a clear message: TSMC is leading the charge into the AI-driven digital era.
“This quarter marks a new era of growth,” the company stated. “AI is not just a trend, it’s a transformative force. And we are the foundation on which it’s being built.”
TSMC’s explosive growth comes on the back of surging orders from tech giants like Nvidia and Apple, both of whom are doubling down on AI integration. Nvidia’s high-performance GPUs, vital for AI training and inference, are fabricated using TSMC’s advanced process nodes. Apple, meanwhile, is embedding AI deeper into its ecosystem, from iPhones to MacBooks, all powered by custom silicon from TSMC.
The semiconductor titan has emerged as the critical enabler of the AI age, supplying the ultra-advanced chips that make machine learning, generative AI, and edge computing possible. Its dominance in the 3-nanometer node and its aggressive push toward 2-nanometer production sets it apart from global rivals still struggling to catch up.
But TSMC’s influence goes far beyond AI. Its chips remain the lifeblood of modern digital infrastructure, from smartphones and PCs to cloud servers and data centers. This diversified exposure has allowed it to thrive amid global uncertainty, sidestepping many of the supply chain and demand fluctuations that have rattled the tech sector in recent quarters.
At the core of this success is the company’s unmatched manufacturing scale and relentless investment in innovation. TSMC is not just keeping pace with demand; it’s reshaping the very boundaries of what’s technologically possible.
Its fabrication plant in Kaohsiung has ramped up output significantly, contributing to this quarter’s performance. Simultaneously, the company is pushing forward with strategic expansion into the U.S. and Japan, aiming to secure its supply chains and deepen its global footprint amid intensifying geopolitical pressure on the chip industry.
Analysts see TSMC as uniquely positioned to dominate the AI infrastructure buildoutexpected through 2026 and beyond.
“There’s no serious conversation about the future of AI without TSMC at the center,” said a senior semiconductor analyst. “They’re not just riding the wave, they’re building it.”
This record-breaking quarter also sends a strong signal to Taiwan’s economy, where semiconductors are a pillar of national growth. As the island’s largest exporter and a major employer, TSMC’s performance bolsters economic resilience and elevates Taiwan’s status as a strategic tech powerhouse.
Meanwhile, global governments are accelerating efforts to localize chip production, recognizing the strategic value of semiconductors. TSMC, with its world-class capabilities and expanded global footprint, stands at the epicenter of this realignment.
Looking ahead, all eyes are on the company’s upcoming investor call, where it is expected to outline its next phase of growth. Key updates will include capital expenditure forecasts, progress on 2nm node development, and the status of global fab projects.
Despite global economic headwinds and rising geopolitical risks, TSMC’s Q3 results make one thing clear: in the era of AI, TSMC isn’t just participating, it’s setting the pace.
At the time of reporting, the exchange rate stood at 1 US dollar to 30.6390 New Taiwan dollars.
