Taiwan Semiconductor Manufacturing Co (TSMC), the world’s largest contract chipmaker and a key supplier to Nvidia and Apple, is expected to post record quarterly TSMC profit as demand for advanced chips accelerates, reinforcing its influential role in the global AI supply chain, according to Reuters.
According to News.Az, a net profit of $15.02 billion (T $475.2 billion) for the three months ended December 31, based on London Stock Exchange Group (LSEG) SmartEstimate, drawn from forecasts by 19 analysts.
SmartEstimates give greater weight to projections from analysts with stronger accuracy records, for the TSMC quarterly profit.
TSMC market capitalization is Asia’s most valuable listed company, reaching about $1.38 trillion. TSMC is scheduled to announce earnings on Thursday, alongside first quarter (Q1) and full year guidance during a call set for 06:00 GMT.
Last week, TSMC earnings report showed a stronger-than-expected 20.45% rise in fourth-quarter revenue. TSMC profit hitting above $15.02 billion (T$452.3 billion) would be its highest-ever quarterly net income and an eighth consecutive quarter of growth.
Advanced
Nodes Fuel TSMC Profit
According to senior research manager at International Data Corporation (IDC), Galen Zeng, fourth-quarter (Q4) revenue was supported by full utilization of TSMC’s 3-nanometre capacity, driven by Apple’s iPhone 17 series using the A19 chip and sustained AI demand.
Looking ahead, Zeng said IDC now expects TSMC quarterly profit to grow between 25% and 30% in 2026 in U.S. dollar terms, up from an earlier forecast of 22% to 26%, citing AI server accelerators and progress at the 2-nanometre node.
“The main driver is the explosive growth of the AI server accelerator manufacturing market,” Zeng said, adding that the TSMC hardware components market projected to grow 78% year-over-year in 2026.
Chief market strategist at Futurum Equities, Shay Boloor, said AI demand is accelerating and TSMC profit continues to gain share at the leading edge. TSMC competitor analysis highlightsstruggle to keep pace. However, he warned that a faster than expected ramp up of overseas fabs could dilute margin gains expected from the company’s 2-nanometre node.
Geopolitics, Investment and Dependence
TSMC is investing $165 billion to build chip factories in Arizona, and US Secretary of Commerce, Howard Lutnick, said in a podcast released last week that the TSMC market capitalization was set to invest more in the country. TSMC, currently in its pre earnings quiet period, did not reply to a Reuters request for comment.
It remains unclear how US President Donald Trump’s tariffs will affect TSMC. Taiwan’s exports to the United States face a 20% tariff, but chips are excluded. TSMC’s Taipei-listed shares rose 44.2% last year, outperforming the broader market’s 25.7% gain.
Geopolitical shifts are increasingly reshaping the global semiconductor landscape, pushing governments to pursue more autonomous supply chains. Despite Taiwan’s global leadership in chip manufacturing and TSMC profit, it remains deeply reliant on European, American, and Japanese companies for several key technologies and inputs.
TSMC market growth power lies in turning ideas into reality at scale. While Nvidia designs the brains behind AI, TSMC physically builds them using the world’s most advanced manufacturing. Control over production, not just design, paves the way for who leads and who follows in the global tech race.
Another factor that is important for Nvidia’s future, and is intricately linked with TSMC’s competitive manufacturing technology, is the dominance that Nvidia currently enjoys in the TSMC AI chip demand market. However, for Nvidia, the most advanced manufacturing process is provided exclusively by TSMC semiconductor manufacturing.
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