TSMC forecasts record profit in 2025 on soaring AI demand

HSINCHU

Taiwanese chip titan TSMC said Tuesday that it expected to see record earnings this year as it increased semiconductor production capacity to meet soaring demand for AI technology.

TSMC is the world's largest contract chipmaker and counts Nvidia and Apple among its clients.

While U.S. tariffs have had "some" indirect impact on the firm, chairman and chief executive CC Wei said the artificial intelligence business would remain "very strong."

"Our revenue and profit this year will set new historical highs," he told the company's annual shareholders meeting.

With AI demand "very high", the company was trying to "increase production capacity to satisfy our customers", Wei said.

But he denied reports that the company was planning to build factories in the Middle East.

TSMC has been under pressure for years to move more of its production away from Taiwan, where the bulk of its fabrication plants are located, amid worries about China.

The chip firm has in recent years broken ground for plants in the United States, Europe and Japan.

Bloomberg News, citing unnamed sources, reported last week that it was considering building an advanced facility in the United Arab Emirates.

"I think rumours are really flying everywhere," Wei said.

TSMC last month reported sales of $11.6 billion for April, a rise of 48.1 percent from a year earlier and up 22.2 percent from March.

The surge came after Donald Trump's global tariff blitz spurred companies to stock up, owing to fears that higher levies were in the pipeline.

Wei told shareholders that TSMC's business "may be affected" if tariffs force up prices and demand for chips falls, but he added: "Our business will still be very good."