AI Demand Pushes TSMC to Record Highs

Taiwan Semiconductor Manufacturing Company (TSMC) delivered its strongest-ever quarterly results, underscoring how the global race for artificial intelligence computing power continues to reshape the chip industry.

According to company data and Reuters reports, TSMC’s third-quarter revenue climbed 30% year-on-year to NT$989.92 billion, while profit is estimated between NT$415 and NT$418 billion — marking a record high and beating market forecasts.

The gains were driven by surging demand for AI processors and data center hardware, as tech leaders like Nvidia, Apple, and AMD continue to expand capacity for AI workloads. TSMC’s dominance in 3-nanometer and 5-nanometer process technologies keeps it at the center of the global semiconductor value chain.

Technology Edge and Expansion Strategy

TSMC’s strength lies in its unmatched production technology and operational efficiency. Its advanced nodes remain critical to powering next-generation AI accelerators and cloud infrastructure. The company’s near-full utilization of advanced fabrication capacity reflects both solid pricing power and strong client reliance.

To reduce risk and meet growing global demand, TSMC is broadening its manufacturing base. Its new Arizona plant in the U.S. and Kumamoto facility in Japan are strategic moves to diversify operations and address rising geopolitical tensions. The company is also considering modest price adjustments for its most advanced processes in 2025, reflecting tight capacity and ongoing cost pressures.

Rising Costs and Geopolitical Risks

Despite its stellar results, TSMC faces several challenges. Expansion projects abroad carry higher construction and labor costs, potentially weighing on future margins. In addition, U.S. trade policies and tensions across the Taiwan Strait continue to pose risks for long-term operations and investor sentiment.

Currency fluctuations, particularly a stronger New Taiwan dollar, could further limit profit growth, as much of TSMC’s revenue is dollar-based while expenses are domestic.

Outlook: AI Keeps the Growth Engine Running

TSMC’s record-breaking quarter highlights the structural strength of the AI investment cycle that is driving technology markets worldwide. For investors in Israel and the United States, the results signal continued demand for advanced chips and ongoing confidence in the semiconductor sector’s long-term trajectory.

Looking ahead, analysts will focus on TSMC’s fourth-quarter guidance and 2026 projections to gauge whether this momentum can be sustained. With AI spending still accelerating globally, TSMC remains firmly positioned at the heart of the next generation of technological growth.