TSMC Reports 39.1% Profit Surge Amid AI Chip Demand

Hsinchu, Taiwan – TSMC announced a remarkable profit increase of 39.1% for the third quarter of 2025, surpassing analysts’ expectations. This surge can be attributed to the strong demand for artificial intelligence chips.

For the September quarter, TSMC reported revenue of NT$989.92 billion, reflecting a 30.3% rise compared to the same period last year. The company’s net income also showed a quarter-over-quarter increase of 13.6%, marking its second consecutive quarter of profit growth.

A significant portion of TSMC’s sales came from its AI and 5G applications division, which accounted for 57% of total revenue in the quarter. As the largest technology company in Asia by market capitalization, TSMC has gained greatly from the AI boom, producing high-performance AI processors for various clients.

TSMC reported that advanced chips, specifically those with sizes of 7 nanometers or smaller, made up 74% of its total wafer revenue during the quarter. In semiconductor technology, smaller nanometer sizes indicate more compact transistor designs, which enhance processing power and efficiency.

Growth in TSMC’s advanced chip sector has been a key driver for revenue gains, according to Counterpoint Research Senior Analyst William Li. “TSMC’s robust revenues are a direct reflection of the strong traction at 3nm as well as high utilization at 4/5nm – both of which are being driven by ongoing orders from AI GPU and HPC customers and premium smartphone platforms,” Li stated in a CNBC interview.