TSMC Solidifies Global Leadership Amid Soaring AI Chip Demand
TSMC has extended its remarkable run of record-setting performance, echoing the surge seen among Taiwan’s top AI server manufacturers. In September 2025, TSMC reported consolidated revenue of NT$330.98 billion (US$10.8 billion), an impressive 31.4% increase from a year earlier and a record high for the month.
This momentum continued through the third quarter, during which revenue soared to an estimated NT$989.92 billion (US$32.47 billion). This mark not only represents a 30% year-on-year growth but also exceeded even the most optimistic market forecasts. The company’s robust quarterly figures followed a strong first half of 2025, fueled by surging demand for TSMC’s most advanced 5nm and 3nm chip nodes.
The primary engine driving TSMC’s recent revenue growth has been skyrocketing orders from leading AI chip designers, especially Nvidia. Their data center and accelerator chips depend on TSMC’s cutting-edge fabrication technologies, which continue to lead the market for performance and efficiency.
Although TSMC has not yet published detailed profit figures for the period, analysts anticipate that its gross margin will remain robust at over 53% thanks to strong pricing power and near-full utilization of its premium process nodes.
TSMC now holds a commanding 71% share in the global pure-play foundry market, far outpacing rivals in both technological capability and manufacturing scale. This market dominance has so far remained resilient, even amid new competitive threats and ongoing geopolitical shifts.
AI continues to drive exceptional demand for the company’s 5nm and 3nm processes, with major cloud service providers increasing infrastructure investment. This persistent AI arms race is expected to sustain industry momentum well into 2026.
Anticipation is already building around TSMC’s 2nm technology, which has attracted considerable interest from major customers. The new node is expected to become a significant growth engine when mass production ramps up in 2026.
Meanwhile, Intel has announced Panther Lake, the first processor based on its advanced 18A node. Despite this milestone, Intel still faces a steep climb to narrow the substantial technology and market share gap with TSMC in the foundry space. The industry expects that Intel’s longer-term ambitions may materialize with its 14A node, which could appeal more widely to external customers. However, it will take time for Intel to build a broader foundry client base and start to close the gap with TSMC.
With its advanced nodes in heavy demand and the AI boom still gathering pace, TSMC looks set to continue its momentum into next year and beyond.
