TSMC Lifts Full-Year Outlook on Soaring AI Demand
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Taiwan Semiconductor Manufacturing Co. Ltd. (TSMC) on Thursday raised its full-year revenue outlook, betting that a surge in demand for artificial intelligence chips will more than offset the loss of the Chinese market due to U.S. export controls.
The world’s largest contract chipmaker now expects its revenue for 2025 to grow by nearly 35%, up from a previous forecast of around 30% issued in July. The upgrade came as TSMC posted third-quarter profits that beat expectations.
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- TSMC raised its 2025 revenue growth forecast to nearly 35%, driven by strong AI chip demand despite losing the China market due to U.S. export controls.
- In Q3, revenue rose 30.3% year-on-year to $33.1 billion; net income increased 39.1% to NT$452.3 billion.
- TSMC remains the exclusive foundry for Nvidia and AMD AI chips, with AI sector demand offsetting losses from export restrictions.
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Who’s Who
- Taiwan Semiconductor Manufacturing Co. Ltd.
- Taiwan Semiconductor Manufacturing Co. Ltd. (TSMC) is the world's largest contract chipmaker. In 2025, it expects revenue to grow by nearly 35%, driven by AI chip demand. TSMC is the exclusive foundry for AI chips from Nvidia and AMD. Third-quarter revenue was NT$989.9 billion ($33.1 billion), with net income up 39.1%.
- Nvidia Corp.
- Nvidia Corp. is mentioned as a customer of TSMC, the world's largest contract chipmaker. TSMC is the exclusive foundry supplier for Nvidia's AI chips. Despite U.S. export restrictions preventing Nvidia from selling its AI chips to China, rising orders from companies like OpenAI are offsetting this loss. OpenAI, in particular, has made a significant commitment, planning to acquire over 10 GW of Nvidia's GPUs.
- Advanced Micro Devices Inc.
- Advanced Micro Devices Inc. (AMD) is a client of TSMC, which serves as the exclusive foundry supplier for AMD's AI chips. Despite U.S. export restrictions preventing sales to China, increased orders from companies like OpenAI are helping to offset this loss, as OpenAI plans to deploy 6 gigawatts of AMD GPUs.
- OpenAI
- OpenAI is a key driver of demand in the AI chip market. The company has announced strategic partnerships committing to deploy millions of AI chips, including substantial orders for AMD GPUs and Nvidia chips. OpenAI is also co-developing custom AI chips with Broadcom Inc. These commitments highlight OpenAI's significant role in the ongoing "AI megatrend."
- Broadcom Inc.
- Broadcom Inc. is codeveloping custom AI chips with OpenAI, an initiative targeting an additional 10 GW of power consumption. This partnership contributes to the substantial demand for AI chips, alongside significant orders from other developers, which is helping to offset market losses due to U.S. export controls.
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