The renowned Taiwanese chip manufacturer, TSMC, has reported substantial growth and anticipates further expansion as the demand for AI infrastructure remains strong. Recently, TSMC announced its Q4 2025 revenue at $33.7 billion, reflecting a 25.5% increase from the previous year. The company expects this momentum to carry into 2026 with projected revenues between $34 and $35.8 billion for the first quarter and an estimated 30% growth for the full year.

According to CEO C.C. Wei, the adoption of advanced AI models by various sectors continues to fuel demand for cutting-edge semiconductor solutions. This ongoing trend supports robust sales of TSMC’s products. The company’s clients, eager to secure future production capacity, foresee several years of heightened activity in the AI space. Furthermore, Wei highlighted the direct engagement of TSMC customers’ clients, notably cloud service providers, emphasizing the lasting impact of the AI trend.

To meet this demand, TSMC has outlined a plan for significant investments in new manufacturing capabilities, aiming to allocate $52 to $56 billion in 2026 alone—most of which will be directed towards more advanced nodes. Given that newer manufacturing processes require higher capital expenditures, CFO Jen-Chau Huang indicated a likelihood of price hikes. Despite this, TSMC remains optimistic, buoyed by a solid revenue forecast and an anticipated improvement in gross margins.

Director of Investor Relations Jeff Su also noted the fast-tracked development of the 2nm process, predicted to outperform the previous 3nm rollouts in revenue generation. Volume production of advanced technologies is set to commence at several TSMC facilities, with operations in the U.S. expected to contribute significantly.