TSMC Forecasts Upward Sales Growth Amid AI-Powered Semiconductor Demand Boom

Taiwan Semiconductor Manufacturing Company (TSMC) has revised its 2025 sales growth forecast upwards, invigorated by a surge in demand for artificial intelligence (AI) computing power. As industries increasingly rely on AI solutions, this trend has propelled TSMC to project an increase in revenue growth, a testament to the robust demand for cutting-edge semiconductor technologies.

TSMC reported a remarkable net profit of 398.3 billion New Taiwan dollars for the second quarter of 2023, marking a 61% increase from the previous year. This outpaced the projected estimates, reflecting the company's capacity to capitalize on the burgeoning AI market. Contributing to this success were TSMC's advanced process technologies, which comprise a significant portion of its revenue. Notably, 3-nanometer technology accounted for 24% of wafer revenue, with 5-nanometer contributing 36% and 7-nanometer adding 14%.

The company's second-quarter high-performance computing (HPC) segment also demonstrated substantial growth, representing 60% of total revenue with a 14% sequential increase. This momentum underscores TSMC's strategic pivot towards AI-driven applications, where the need for sophisticated semiconductors is accelerating. This trend is largely driven by notable players in the tech industry capitalizing on AI advancements.

Looking ahead, TSMC anticipates third-quarter sales will range between 31.8 billion to 33 billion USD, slightly above previous forecasts. The company expects operating profit margins between 45.5% to 47.5%, reiterating its strong operational efficiencies despite currency fluctuations.

In line with its ambitious growth agenda, TSMC is set to introduce its 2-nanometer technology by 2025. The project requires significant investment, with research to production costs estimated at 725 million USD. This strategic investment underscores TSMC’s commitment to maintaining technological leadership in the semiconductor industry.

Capital expenditure projections for 2025 remain between 38 billion and 42 billion USD, reinforcing TSMC's investment in expanding its American and European operations. The company's strategic efforts aim to sustain its position amidst a rapidly evolving global demand landscape for semiconductor solutions, driven by AI innovation.