TSMC Reports Record Revenue of $22.3 Billion in Q4 2025 Amid Sustained AI Chip Demand

Taiwan Semiconductor Manufacturing Company (TSMC) delivered its highest quarterly revenue in company history, reaching $22.3 billion during the fourth quarter of 2025. This marks a 12% increase compared to the same period in the previous year and a 6% sequential rise, underscoring sustained momentum in global semiconductor demand. The growth was primarily fueled by surging demand for advanced logic chips, particularly those fabricated on TSMC’s 3nm and 5nm process nodes. Revenue from 3nm technology alone accounted for 18% of total chip sales in the quarter, up from 12% in Q4 2024, highlighting its growing importance in AI and high-performance computing applications. Customers including major AI infrastructure providers and leading consumer electronics makers contributed to the uptick. Gross margin for the quarter reached 62.4%, a slight improvement from 61.8% in Q3 2025, reflecting efficient capacity utilization and pricing resilience despite macroeconomic headwinds. The company maintained a strong order book, with forward guidance indicating continued investment in 3nm expansion and increased capacity for 2nm development, expected to ramp in late 2026. Market participants reacted positively, with TSMC’s shares rising 4.3% in after-hours trading. The results also signal continued confidence in the long-term trajectory of AI-driven semiconductor demand, benefiting not only TSMC but its ecosystem of equipment suppliers, software developers, and cloud infrastructure partners.