In late December 2025, Taiwan Semiconductor Manufacturing Company (TSMC) reported robust financial results that underscore its central role in the global microelectronics supply chain. For the month of December 2025 alone, TSMC’s consolidated revenue reached approximately NT$335 billion (~US $10.6 billion) — up 20.4 percent year‑over‑year even as revenues eased slightly from November’s levels. For the full calendar year, the company’s earnings totaled NT$3,809.05 billion, representing a 31.6 percent increase over 2024.
These figures are not just impressive on their own; they also reflect broader industry trends. Demand for the advanced logic and packaging services that underpin AI accelerators, high‑performance processors, and next‑generation system‑on‑chips remains strong even as other segments of the market diversify or soften. TSMC’s ability to continue growing revenue so substantially in a highly competitive and geopolitically tense climate highlights the strategic importance of foundry capacity in 2025.
Much of this performance can be attributed to the critical role TSMC plays in manufacturing advanced microelectronics for major global customers. The company’s advanced process nodes — including 5 nm and 3 nm technologies — are widely used by leading designers of AI accelerators, high‑end CPUs, and system ASICs. Analysts have noted that TSMC’s capacity for these cutting‑edge chips, as well as its high‑density packaging technologies (such as CoWoS for high‑bandwidth memory integration), are near full utilization through 2026. This puts TSMC in a dominant position but also creates a near‑term capacity constraint that is visible across multiple parts of the supply chain.
Equally noteworthy is TSMC’s investment in capacity expansion. Beyond its Taiwan headquarters, TSMC is also pushing ahead with large foreign fabrication and packaging complexes — notably in Arizona, USA — where a cluster of advanced fabs and associated research centers is being built to produce 4 nm, 3 nm, and ultimately 2 nm chips. These developments are part of a multi‑year plan to diversify manufacturing risk and provide regional capacity outside of Asia, a strategic goal for many customers seeking resilience.
For microelectronics buyers, designers, and systems integrators, TSMC’s 2025 results hold several key insights. First, advanced node capacity remains a scarce but essential resource, reinforcing the need to secure long‑lead wafer allocations and multi‑year supply agreements. Second, with packaging services also in high demand, early collaboration on package architecture and qualification can mitigate bottlenecks as chip designs grow more complex. Third, the industry’s trajectory — where three‑digit percent growth in revenue is still being driven by AI, data‑center, and high‑performance compute demand — suggests continued prioritization of high‑margin technologies over commoditized segments.
These developments underscore TSMC’s role as both a bellwether and a bottleneck in the microelectronics ecosystem. Its revenue growth in December 2025 and across the full year signals not only strong demand for high‑performance silicon, but also the escalating importance of foundry strategy, capacity planning, and supply‑chain resilience as key considerations for chip buyers and system architects in the coming years.
