TSMC's record quarter underlines surging AI chip demand, but limited wafer capacity is intensifying competition among major customers. The bottleneck could slow some AI build-outs even as TSMC expands factories.
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01Summary
- 01TSMC posted record profit for a sixth straight quarter and expects fourth-quarter revenue to be 58% higher than a year earlier.
- 02The company said it had capacity for more than 17 million 12-inch equivalent wafers last year, but customers want more.
- 03TSMC had 534 customers in 2025, and its top 10 customers accounted for 78% of net revenue.
- 04TSMC is adding capacity with new fabs in Taiwan, Japan and Arizona, and in July raised its Arizona commitment by $100 billion to $265 billion.
- 05Trade body SEMI expects 102 new chip fabs to come online globally by 2029, including 15 in the US and 78 in Asia.
02Why it matters
AI chip supply is becoming a capacity battle, which can affect how quickly companies such as Nvidia, AMD, Broadcom and big cloud groups can expand. It also points to where future investment is likely to go in semiconductors and manufacturing.
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