TSMC's 2025 results combine rapid growth with high margins. The clearest strength is advanced-node revenue paired with cash-generative profitability. Capital intensity, customer and end-market cycles, and the geopolitical sensitivity of Taiwan-centred manufacturing are the principal risks.
What does TSMC do?
TSMC manufactures semiconductors designed by other companies. It does not sell end-user chips under its own brand, which is central to its customer-neutral pure-play foundry model. Revenue depends on process technology, wafer volume, product mix and capacity utilisation.
What do the 2025 financials show?
Annual revenue increased 31.6% to NT$3.81 trillion. Net income reached NT$1.72 trillion and EPS NT$66.26, both up 46.4%. Gross margin was 59.9%, operating margin 50.8% and net margin 45.1%. Revenue was US$122.42 billion on a US-dollar basis.
Advanced technologies—7 nanometres and below—represented 74% of wafer revenue. This shows the economic contribution of process leadership, while also underlining exposure to high-performance computing and smartphone demand.
Critical combinations for a long-term investor
- Net income grew faster than revenue, indicating favourable operating leverage.
- High margins coincided with a richer advanced-node mix.
- The company increased its 2025 dividend from NT$14 to NT$18 per share.
- New fabs and advanced processes require very high, recurring capital expenditure.
- Technology cycles, utilisation and customer demand can move margins.
- Manufacturing geography makes geopolitical and supply-chain risk material.
Current context: Q2 2026
The company reported US$40.20 billion of Q2 2026 revenue, a 67.7% gross margin and a 60.3% operating margin. Two-nanometre production reached 3% of quarterly wafer revenue, while 7nm and below totalled 77%. TSMC's US$44.6–45.8 billion Q3 revenue range is company guidance, not a Vestorvia forecast.
TSMC's financials show a strong combination of quality and growth, but capital requirements and geopolitical risk should not be overlooked by focusing on margins alone. This is not investment advice.