Strong demand for AI processors drives TSMC’s growth

November 17, 2025 /SemiMedia/ — Taiwan Semiconductor Manufacturing Co. (TSMC) is set to benefit from another wave of AI-related chip demand as major customers including Nvidia, AMD and Broadcom continue to secure advanced-node capacity. Industry analysts say the surge in AI processors, networking ASICs and high-performance accelerators is giving TSMC strong momentum across 2025 and beyond.

People familiar with the company’s order outlook noted that TSMC’s AI-related revenue surpassed the US$10 billion mark in 2024, marking a new phase of growth. This year, heavy bookings for 3nm and below are expected to lift AI revenue to between US$28 billion and US$33 billion, representing a significant jump and accounting for roughly a quarter of the company’s total sales.

Customers secure long-term wafer capacity

Analysts expect demand to broaden further as cloud providers, chip developers and system vendors expand their next-generation AI roadmaps. Based on current customer forecasts, TSMC’s AI business could exceed US$40 billion in 2026, with annual revenue remaining above the NT$1 trillion threshold. Customers across the AI supply chain are also locking in long-term wafer capacity, giving TSMC visibility on orders through at least 2028.

TSMC said it continues to collaborate closely with its ecosystem partners, noting that more than 500 customers rely on the foundry’s process technologies. Given rising design complexity, engagements for new advanced-node projects typically begin two to three years ahead of production.

TSMC’s technology roadmap gains momentum

The company confirmed that its 2nm technology has entered volume manufacturing. Driven by high-performance computing, mobile processors and AI accelerators, TSMC expects strong expansion of its 2nm business by 2026.