TSMC reported a 37% increase in revenue in January to NT$401.3 billion (about US$12.7 billion), driven by continued demand for AI-related chips.
That beat the company’s forecast for 30% growth for the year. However, part of the strong performance in January is due to the Lunar New Year holiday falling in January 2025.
TSMC, a key supplier to Nvidia and Apple, plans to increase its capital expenditure to US$56 billion in 2026, up about 25% from 2025, largely to meet demand for chips for data centers.
Despite the strong sales figures, concerns remain about the long-term sustainability of AI-driven growth amid industry volatility and a possible technology slowdown.
At the same time, the increased spending on artificial intelligence by large technology companies such as Amazon and Meta has raised questions among investors about the long-term impact of these investments.
