The demand for AI chips continues to be hot, and TSMC’s Q4 net profit increased significantly by 35%, with full-year capital expenditures reaching US$40.9 billion in 2025 | Financial report news

# Source: Wall Street Insights

## By Zhang Yaqi

Taiwan Semiconductor Manufacturing Company (TSMC) posted robust earnings growth in the fourth quarter of 2025, with its net profit after tax surging 35% year-on-year to NT$505.74 billion, mainly driven by the sustained strong market demand for advanced process technologies. The company’s quarterly revenue topped the NT$1 trillion mark for the first time.

According to the financial report released by TSMC on Wednesday, its consolidated quarterly revenue reached NT$1.05 trillion, representing a 20.5% year-on-year increase, while earnings per share (EPS) rose to NT$19.50. In U.S. dollar terms, the quarterly revenue stood at $33.73 billion, up 25.5% year-on-year and 1.9% quarter-on-quarter.

This financial performance exceeded market expectations, reflecting the further release of profitability from advanced process nodes. The company’s gross profit margin climbed to 62.3% in the quarter, with an operating profit margin hitting 54.0%, both standing at historically high levels. TSMC’s total capital expenditure in 2025 amounted to $40.9 billion.

TSMC’s U.S.-listed shares surged nearly 2% in after-hours trading.

### Advanced Processes Account for an Expanding Revenue Share

TSMC’s advanced process technologies (including the 7nm and more cutting-edge processes) have become its absolute revenue pillar. Financial data shows that the shipment value of advanced processes accounted for 77% of the total wafer sales revenue in the quarter.

Among them, the contribution ratio of the current most advanced 3nm process further rose to 28%, indicating that key customers are accelerating the migration to the latest process nodes. The 5nm process remained the largest single contributor, accounting for 35% of the total quarterly sales revenue, while the 7nm process took a 14% share. This revenue structure dominated by high-value-added products has ensured that the company can maintain high profitability amid market fluctuations.

More updates to follow...

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