TSMC’s revenue soared 42% year-over-year in the first quarter of 2025 to $27.7 billion, fueled by AI-driven demand and 5G adoption.
The company’s net profit jumped 60% to $11.9 billion, reflecting its dominance in advanced chip manufacturing.
Key Drivers of Growth
The surge in revenue was largely attributed to the increasing demand for AI and 5G technologies,
which accounted for 59% of TSMC’s total revenue.
The company’s advanced 7-nanometer and below process technologies contributed 73% of its wafer production revenue.
Future Outlook
TSMC is optimistic about its growth prospects, forecasting a 20% revenue increase in 2025.
The company is investing $100 billion in expanding its global manufacturing capacity,
including a new facility in Arizona, USA, to cater to the growing demand from clients like AMD and Nvidia.
Challenges Ahead
Despite the positive outlook, TSMC faces potential headwinds due to the trade policies of former US President Donald Trump,
which could impact its business with major clients like Nvidia and AMD.
The imposition of tariffs and export restrictions may pose challenges to TSMC’s future growth.