TSMC Shatters Records with Q4 Profits Soaring 35% Amidst Skyrocketing AI Chip Demand
Taiwan Semiconductor Manufacturing Company (TSMC) unveiled record-shattering fourth-quarter earnings on January 15, 2026. The company’s net income surged 35% year-over-year to NT$505.74 billion ($15.8 billion), a growth primarily fueled by the robust demand for advanced AI chips. TSMC’s revenue reached an impressive NT$1.046 trillion ($33.73 billion), surpassing analyst expectations and marking the company’s eighth consecutive quarter of profit growth.
As the world’s largest contract chipmaker, TSMC produces cutting-edge processors for tech giants such as Nvidia and AMD. The company has significantly benefited from the artificial intelligence boom. In fact, TSMC’s high-performance computing division, which includes AI and 5G applications, accounted for 55% of sales in the quarter. Meanwhile, smartphone demand represented 32% of sales. Notably, advanced chips measuring 7-nanometer or smaller comprised a whopping 77% of total wafer revenue.
Looking ahead to the first quarter of 2026, TSMC projects revenue between $34.6 billion and $35.8 billion. This represents a 38% year-over-year growth at the midpoint. The company also announced ambitious capital expenditure plans of $52 billion to $56 billion for 2026. This is part of TSMC’s strategy to expand production capacity globally, with major projects underway in Arizona, Japan, and Europe. Chief Financial Officer Wendell Huang expressed confidence in the continued strong demand for leading-edge process technologies, which he believes will support the business throughout 2026.
Source: CNBC