TSMC, the world’s largest contract chip manufacturer, reported a sharp rise in third-quarter revenue for 2025, underscoring how artificial intelligence continues to drive global semiconductor demand. The company announced on Thursday that its revenue for the July to September period rose 30% year-on-year to T$989.92 billion (approximately $32.47 billion), comfortably exceeding market estimates and positioning itself within the guidance range of $31.8 billion to $33 billion set in July.
The latest performance surpassed an LSEG SmartEstimate of T$973.26 billion, based on projections from 22 analysts, reflecting stronger-than-expected orders from major clients such as Nvidia and Apple. This surge highlights the growing influence of AI-related applications on the semiconductor sector, offsetting the slowdown in consumer electronics demand that had characterized much of the post-pandemic period. Analysts say TSMC’s robust position in advanced chip manufacturing continues to make it a key supplier in the global AI ecosystem, as industries ranging from data centers to consumer technology seek more powerful and efficient processing capabilities.
TSMC’s consistent ability to meet the performance and scale requirements of high-end computing applications has secured its role as a crucial partner in the global technology supply chain. The company has seen increased orders from AI chip developers and major device makers integrating AI capabilities into their products. The AI boom has led to higher utilization rates at TSMC’s advanced process nodes, particularly its 3-nanometer and 5-nanometer lines, which serve as the foundation for next-generation computing hardware. Market observers anticipate that this trend will continue as the global demand for AI servers, GPUs, and neural processing units rises further in 2026.
Beyond its strong revenue figures, TSMC’s market momentum has been reflected in its share price performance. Taipei-listed shares have climbed 34% since the start of the year, significantly outperforming the broader Taiwanese market’s 18.5% rise. Investors have shown confidence in the company’s growth trajectory amid expanding global reliance on advanced semiconductors. Taiwan’s Foxconn, another major electronics manufacturer and Nvidia’s largest server maker, also reported record-breaking sales for the same quarter, signaling broad-based strength across the supply chain serving the AI industry.
TSMC is scheduled to release its full third-quarter earnings on October 16, which will include updated forecasts for the final quarter and full-year 2025. Industry analysts expect the company to maintain its growth outlook, driven by rising AI workloads and the continued scaling of semiconductor manufacturing capacity worldwide. The company’s ability to capture this momentum reinforces its position not only as a key enabler of AI technologies but also as a central force in shaping global digital infrastructure.
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