Jul. 18, 2025 –
TSMC to build 11 fabs in Taiwan to meet demand for Ai chips as it ramps up production in Arizona and Japan. Demand for AI chips is driving a 30% increase in revenue this year to break through US$100bn.
The company is speeding up volume production of 4nm technology at its Arizona fab in the US later this year. 2nm production in Taiwan in already ramping at the same pace as 3nm and 5nm, driven by both smartphone chips for Apple and now AI chips for Nvidia.
“We concluded our second quarter with revenue of US$30.1bn, above our guidance in US dollar terms, mainly due to continued robust AI and HPC- related demand,” said CC Wei, CEO of TSMC. “Looking into second half of 2025, we have not seen any change in our customers’ behaviour so far. However, we understand there are uncertainties and risk from the potential impact of tariff policies, especially on consumer- related and price-sensitive end market segment. Having said that, we believe the demand for semiconductors is very fundamental and will continue to be robust,” he said.
“In Taiwan, with support from the Taiwan government, we plan to build 11 wafer manufacturing fab and four advanced packaging facilities over the next several years,” said Wei. “We are preparing for multiple phases of 2nm fab in both in both Hsinchu and Kaohsiung Science Parks to support the strong structural demand from our customers.”
3nm process technology contributed 24% of wafer revenue in the second quarter, while 5nm was 36% and 7nm was 14% for a total of 74%. HPC revenues increased 14% quarter-over-quarter to account for 60% of the second quarter revenue while smartphone increased 7% to account for 27%. IoT increased 14% to account for 5%, while automotive stayed flat and accounted for 5%, with 1% in consumer chips.
“Usually, we ramp up a new node using the smartphone. We knew that everybody knew it,” said Wei. “Now it’s not only smartphone, but also HPC product. However, the ramping profile I just reported is similar to 3-nanometer. It’s limited by our capability to build a new fab to ramp it up and also a little bit straightforward is constrained by the capacity. So we say the ramp profile is similar to N3, but the revenue contribution certainly will be bigger because you don’t expect our N2 is the same price as N3.”