TSMC Posts Record October Sales Driven by Strong AI Demand
- ByStartupStory | November 11, 2025
Taiwan Semiconductor Manufacturing Company (TSMC), the world’s largest contract chipmaker, reported record consolidated sales of NT$367.47 billion (approximately US$11.86 billion) for October 2025, marking an 11% increase from September and a 16.9% rise compared to the same month last year. The figure smashed TSMC’s previous monthly sales record set in April 2025, highlighting robust demand driven primarily by artificial intelligence (AI) applications.
From January to October 2025, TSMC’s total revenue reached NT$3.13 trillion, a notable 33.8% increase year-over-year, reflecting sustained growth throughout the first ten months of the year. The company’s CEO, C.C. Wei, attributed the strong performance to continuous investments by major technology players in data center expansions and high-performance computing infrastructures essential for AI workloads.
TSMC remains a critical supplier to leading AI chip companies like Nvidia, whose CEO Jensen Huang recently urged TSMC to increase production efforts to meet persistent global demand for advanced AI processors. While the pace of growth in monthly sales has slowed slightly compared to earlier in the year, analysts see this as a natural moderation after a phase of rapid expansion driven by AI hardware adoption.
The outlook for the fourth quarter remains optimistic, with TSMC forecasting revenue between US$32.2 billion and US$33.4 billion. This estimate factors in typical seasonal slowdowns but anticipates that continued strong demand from AI-software-driven sectors will largely offset the usual downturn.
TSMC’s capital expenditure for 2025 remains capped at $42 billion as it balances expansion with supply chain realities, including risks related to global trade tensions and tariffs. Despite challenges, the chipmaker projects a compound annual growth rate of over 45% for its AI-related chip business from 2024 through 2029, underscoring the transformative impact of AI computing on the semiconductor industry.
The record sales month also reflects broader trends in the tech ecosystem, where cloud giants like Meta, Alphabet, Amazon, and Microsoft are collectively expected to increase AI infrastructure spending by more than 20% in 2026. This surge signals sustained robust demand for AI chips and computing power, areas where TSMC is well positioned to maintain its leadership.
In summary, TSMC’s record sales in October 2025 reinforce the company’s pivotal role as a backbone of the global AI hardware supply chain. The growth driven by AI demand is poised to support TSMC’s financial strength and strategic investments, making it a bellwether for the semiconductor market’s AI-led expansion in the coming years.
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