TSMC is bumping capital expenditure in 2025 to between $38 billion and $42 billion in anticipation of scooping up more chip manufacturing contracts in the field of AI processors.
An aerial view of Taiwan semiconductors Mega Factory under construction in North Phoenix, Arizona. – Click to enlarge
The Taiwanese-based biz is looking to secure its share of this sector by ramping production of 2nm chips this year, and pledged volume production of cutting-edge 1.6nm chips for next year.
TSMC seems to have a spring back in its step following the global fall in demand for silicon during 2023. Today it reported [PDF] calendar Q4 revenue of $26.88 billion, up 37 percent year-on-year.
For Q1 of 2025, TSMC is forecasting a sequential decline in revenue, due to “smartphone seasonality.” If accurate, this would see the world’s largest chip maker bring in between $25 billion and $25.8 billion, a 5.5 percent drop over today’s results, but up 34.7 percent over the same period last year.
However, judging by the capex projections for this financial year, TSMC seems to be in confident mood. It is planning to spend up to $42 billion, compared to $29.8 billion in 2024.
Speaking on an analyst conference call to discuss the results, vice chairman and CEO C.C. Wei claimed: “We expect 2025 to be another strong growth year for TSMC, and forecast our full year revenue to inc
