TSMC gave a strong outlook for 2025, driven by robust demand for AI applications, and expects AI chip revenue to double.
The company maintained its full-year guidance for sales and capital expenditure despite ongoing concerns about U.S. tariffs and tighter export controls to China. Frankfurt-listed TSMC shares jumped 5 percent in response to the forecast.
Second-quarter revenue is projected at $28.4–$29.2 billion, compared to $20.8 billion a year ago. Full-year revenue growth is expected to land between 20 percent and 30 percent. Net profit for Q1 rose 60 percent to T$361.6 billion ($11.1 billion). Capital spending for the year remains unchanged at $38–$42 billion.
Revenue from China declined to 7 percent of total sales from 9 percent a year earlier, while North America accounted for 77 percent, up from 69 percent. TSMC’s U.S. investment has now reached $165 billion, and about 30 percent of future 2-nanometer chip capacity is expected to be based in Arizona.
TSMC is reportedly not involved in joint ventures or tech transfers, despite speculation about a potential stake in Intel. TSMC CEO C.C. Wei emphasized the company’s neutrality in tariff matters and said customer behavior has not changed amid the geopolitical uncertainty, Reuters news report said.
TSMC’s Taipei-listed shares have dropped 20 percent this year, their worst start in three decades. Foreign investors have offloaded $8.66 billion in TSMC shares in 2024 after net buying $2 billion last year and $10.4 billion in 2023, according to Goldman Sachs. Market sentiment has been affected by concerns over AI infrastructure spending and emerging competition from firms like China’s DeepSeek.
TelecomLead.com News Desk
