Record High: TSMC January Revenue Tops NT$400 Billion for the First Time as AI Boom Persists

TSMC, the world’s largest contract chipmaker, released its latest monthly revenue report on Tuesday. The data shows that TSMC's January revenue grew by nearly 20% month-on-month and surged nearly 40% year-on-year.

 

This indicates that global demand for artificial intelligence (AI) chips remains robust and the AI boom continues. Despite concerns over an AI bubble, global tech giants have not scaled back their chip orders.

 

Specifically, TSMC's January revenue reached NT$401.26 billion.

 

The previous record was set in October 2025, when monthly revenue hit NT3,809.05 billion, up 31.6% year-on-year.

 

 

Earnings released by TSMC last month showed that its fourth-quarter net profit for 2025 increased by 35% year-on-year, exceeding expectations and hitting a new high. The company also projects that its operating margin for the first quarter of 2026 will range between 54% and 56%, compared to a market estimate of 49.7%.

 

The gross margin for the first quarter is expected to be between 63% and 65%, surpassing the market estimate of 59.6%. This signals that the chipmaker is benefiting significantly from the AI frenzy.

 

More critically, TSMC expects its capital expenditure for 2026 to reach as much as $56 billion, a substantial 37% increase from the actual 2025 expenditure of $40.9 billion, setting a new historical high for the company. Markets have interpreted this as a sign of the company's firm confidence in the continued expansion of the AI industry.

 

As the foundry and key strategic partner for Nvidia, TSMC is one of the biggest winners of the post-ChatGPT AI boom, playing a central role in the production of Nvidia’s AI accelerators.

 

Meanwhile, Apple, the world’s largest smartphone maker, remains one of TSMC’s most vital clients. Core chips for the iPhone, such as the A-series processors, are primarily manufactured by TSMC.

 

Over the past year, global tech giants have raced to invest heavily in data centers to gain an edge in the AI competition. This "cash-burn" momentum is expected to accelerate. Earnings reports from the last two weeks indicate that the "Big Four"—Meta, Microsoft, Alphabet, and Amazon—will see their combined capital expenditure reach $660 billion in 2026.

 

Amid market concerns over such massive capital outlays, Nvidia CEO Jensen Huang spoke out last Friday, calling the spending rational and sustainable. Huang believes this wave of computing infrastructure build-out could last for seven years, followed by an equipment replacement cycle.

 

Prior to the data release, TSMC’s shares traded on the Taiwan Stock Exchange rose 3.6% on Tuesday to close at NT$1,880. The stock has gained nearly 20% year-to-date, following a 70% surge throughout 2025.