The Taiwanese company anticipates record revenues due to the growing demand for advanced chips for artificial intelligence.
Taiwan Semiconductor Manufacturing Company (TSMC), the world’s leading semiconductor foundry, continues to solidify its leadership position in the industry, thanks to the surge in semiconductors designed for artificial intelligence (AI). In its latest financial results presentation, the company announced ambitious plans, including an investment of $42 billion in 2025, aimed at expanding its production capacity to meet the increasing market demand.
Growth Driven by AI
After overcoming a slowdown in chip demand during 2023, TSMC closed 2024 with a remarkable revenue increase of 37%, reaching $26.88 billion. The outlook for 2025 is equally optimistic, with an annual growth projection of 25%, primarily driven by the production of AI chips.
According to CC Wei, TSMC’s Vice Chairman and CEO, the demand for AI semiconductors could double in the coming years. “AI accelerators will be the main engine of growth for our HPC (high-performance computing) platform and the biggest contributor to our global revenue increase in the coming years,” said Wei.
AI accelerators, such as GPUs, ASICs, and HBM controllers, are at the center of this demand. Additionally, the need for smaller devices, such as processors and neural processing units for personal computers and client devices, complements this growth landscape.
Innovation in Process Nodes
TSMC continues to make technological advancements by introducing more advanced process nodes. Currently, the company is utilizing its N3E node, based on 3-nanometer technology, while preparing for the transition to the N2 node (2 nanometers) in the second half of 2025. This new process promises significant improvements:
- A 10 to 15% increase in speed with the same power consumption.
- An improvement in density of over 15%, enabling the production of more powerful and efficient chips.
Looking ahead, TSMC is working on its A16 technology, which will allow for the production of chips with a 1.6-nanometer node by 2026. This advancement will lead to an 8 to 10% performance increase with the same power as the N2 nodes, along with an additional density gain of 7 to 10%.
A Promising Future for TSMC
TSMC is well-positioned to capitalize on the rise of artificial intelligence and high-performance computing. The company, which manufactures chips for tech giants like Apple, NVIDIA, and AMD, has indicated that semiconductors designed for AI will be crucial for maintaining its industry leadership.
With its strategic vision and ability to implement cutting-edge technologies, TSMC is not only responding to current market demands but is also positioning itself to dominate the future of semiconductors, a key sector in the global digital economy.
References: The Register and TSMC