Taiwan Semiconductor Manufacturing Co. (TSMC), the world's largest contract chipmaker, remains bullish on its growth prospects for 2025, driven primarily by unprecedented demand for artificial intelligence chips.
During the company's annual shareholders' meeting in Hsinchu on June 3, Chairman and CEO C.C. Wei announced that TSMC expects to achieve record-breaking revenue and profit this year. While acknowledging that US tariffs have had "some" indirect impact on the firm, Wei emphasized that the artificial intelligence business would remain "very strong."
"Our revenue and profit this year will set new historical highs," Wei told shareholders. With AI demand "very high," the company is working to "increase production capacity to satisfy our customers." "I can assure you that AI demand has always been very strong and it's consistently outpacing supply," Wei added, noting that while tariffs might lead to slightly higher prices, the robust demand for AI chips shows no signs of slowing.
TSMC is expected to maintain its leadership in advanced process nodes through 2025. Industry analysts at TrendForce predict that TSMC's CoWoS (Chip on Wafer on Substrate) capacity will double to 75,000–80,000 wafers per month this year, fueled by growing demand for AI-related customized chips and advanced packaging solutions.
The company reported strong financial performance in early 2025, with April sales reaching NT$349.6 billion (US$11.6 billion), representing a 48.1% increase year-over-year and a 22.2% rise from March. This surge came after US President Donald Trump's global tariff announcements prompted companies to stock up in anticipation of potential higher levies.
TSMC's dominant position in the foundry market continues to strengthen, with its market share projected to climb from 59% in 2023 to 64% in 2024 and 66% in 2025, far outpacing competitors such as Samsung, SMIC, and UMC. The company's significant investments in AI-driven advanced nodes are expected to drive rapid growth in both traditional and modern semiconductor manufacturing.
While acknowledging potential challenges from tariffs, Wei maintained an optimistic outlook: "Our business will still be very good. I am not afraid of anything, I am only afraid that the world economy will decline." TSMC has been in the crosshairs of Trump, who has accused Taiwan of stealing the US chip industry, but semiconductors were excluded from his recent 32% tariff on Taiwanese imports.