A maker of the tiny chips that power the world's smartphones, computers, and game consoles, TSMC is the world's largest independent semiconductor foundry. It manufactures the processors that companies like Apple and Nvidia design — the A-series chips inside iPhones and Nvidia's graphics processors. Founded in 1987 by Morris Chang, TSMC pioneered the 'pure-play foundry' model, with its first factory on the campus of Taiwan's Industrial Technology Research Institute.
20-F · Fiscal year ended Dec 31, 2025 · SEC filing ↗
TSMC 2025 revenue rose 25% to $88.3B with operating margin at 48.6% as top-10 customer share hit 78%
Top-10 customer concentration climbed to 78% of 2025 net , reversing a multi-year decline. Revenue rose 25% to $88.3B and held at 48.6% as High Performance Computing reached 58% of the business and 2-nanometer entered . The company is scaling capacity aggressively, with 2026 guided to $52–56B, while customer reliance deepens.
Key takeaways
Top-10 customers accounted for 78% of 2025 net , with the two largest at 19% and 17%, up from 76% in 2024 and reversing three years of gradual decline.
High Performance Computing rose to 58% of net in 2025, up from 51% in 2024, growing 48% on AI accelerators, GPUs, and networking chips supported by advanced packaging.
Net rose 31.6% to NT$3.8T and expanded to 59.9% from 56.1%, driven by higher (7nm and below at 74% of wafer revenue) and a 16.4% increase in to 15.0 million 12-inch equivalents.
Section summaries
Quantitative and Qualitative Disclosures About Market Risk
TSMC faces FX, interest rate, and equity price risks, partially hedged; a 10% adverse FX move could cut net income by NT$1,987M.
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is almost entirely in USD, but over half of is in non-NTD currencies, so a weaker USD hurts NTD-reported revenue and profit.
A hypothetical 10% adverse FX move would reduce by NT$1,987M (US$63M) as of Dec 31, 2025, after hedges.
2-nanometer technology entered in 2025 and 16-angstrom is expected in 2026, extending the advanced-node roadmap.
were $40.9B in 2025 and 2026 is guided at $52–56B for 2nm/3nm capacity and advanced packaging; was $55.7B, up 37.3%.
Income tax expense rose 39.6% to NT$346,530M on higher taxable income, and a 10% adverse move would cut by $63M after .
What changed
2025 came in at $40.9B against the $38–42B guide flagged in 2024; 2026 capex is now set at $52–56B, a step-up from the prior year.
Top-10 customer concentration rose to 78% in 2025 from 76% in 2024, continuing the reversal of the decline flagged from the 70% 2023 level — the concentration watch item is moving the wrong way.
was 48.6% in 2025, within the range shaped by 3nm ramp and overseas fab costs flagged in 2023–2024; 2nm volume launch in 2025 is the next margin variable to track.
Advanced technologies (7nm and below) reached 74% of wafer in 2025, up from 69% in 2024 and 58% in 2023, continuing the mix shift toward leading nodes.
North America was 75% of 2025 net , consistent with the 65–68% range seen in 2021–2024, as the geographic base stayed concentrated.
What to watch
Track 2026 execution against the $52–56B guide, focused on 2nm/3nm capacity and advanced packaging.
Monitor top-10 customer concentration from the 78% of 2025 net level as export controls and trade actions evolve.
Watch as 2nm ramps and overseas fab startup costs rise, with at 59.9% to anchor the move.
Track 16-angstrom in 2026 and its implied roadmap timing for advanced nodes.
A 100bps adverse interest rate shift would lower by NT$4,081M (US$130M) on fixed-income investments, after hedges.
Most debt is fixed-rate and carried at , so interest rate changes do not affect its cash flows or .
Equity investments (mostly private funds) are unhedged; a 10% price decline would reduce by NT$1,020M (US$33M).
Inflation risk is noted from raw materials, wages, electricity, and fab construction, but has not materially impacted results to date.
Geopolitical tensions, tariffs, and export controls create significant uncertainty for semiconductor demand, supply chains, and global operations.
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U.S. tariffs and trade actions, including a 25% tariff on certain advanced chips and potential broader semiconductor tariffs, may increase costs and reduce demand.
Expanded U.S. export controls on advanced computing ICs and equipment to China require licenses, risking shipment delays or prohibitions despite a current annual license for TSMC Nanjing.
Customer concentration is high and rising, with the top 10 customers accounting for 78% of 2025 net , and the top two representing 19% and 17%, respectively.
Global fab expansion projects face challenges including higher costs, labor shortages, supply chain disruptions, and risks of not receiving or complying with government incentives like U.S. CHIPS Act grants.
The cyclical semiconductor industry and fixed-cost manufacturing base mean demand downturns or ASP declines can significantly pressure margins and earnings.
TSMC is the world's largest dedicated semiconductor foundry, manufacturing chips for fabless, system, and IDM customers across advanced and specialty nodes.
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is reported by platform: High Performance Computing (58%), Smartphone (29%), IoT (5%), Automotive (5%), DCE (1%), and Others (2%) in 2025.
HPC grew 48% in 2025, driven by AI accelerators, GPUs, CPUs, and networking chips, supported by like CoWoS and TSMC 3DFabric.
2-nanometer technology entered volume production in 2025; 16-angstrom is expected in 2026, underscoring technology leadership.
2025 were NT$1,272 billion (US$40.9 billion), with 2026 capex expected between US$52–56 billion, focused on 2nm/3nm capacity and .
Geographically, 75% of 2025 net came from North America, reflecting strong demand from leading semiconductor companies.
TSMC operates a global fab network: 1×150mm, 6×200mm, 9×300mm wafer fabs, and 7 advanced backend fabs across Taiwan, US, China, and Japan.
Net revenue rose 31.6% to NT$3.8T in 2025, driven by higher advanced-node mix and wafer shipments, lifting gross margin to 59.9%.
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Net increased 31.6% to NT$3,809,054 million, primarily from higher due to a greater share of advanced technologies (7nm and below) and a 16.4% rise in 12-inch equivalent wafer shipments to 15,022 thousand.
expanded to 59.9% from 56.1%, mainly due to higher and cost improvement, partly offset by unfavorable foreign exchange rates.
Advanced technologies (7nm and below) contributed 74% of wafer in 2025, up from 69% in 2024, with 3nm rising to 24% and 5nm to 36%.
Operating expenses grew 14.8% to NT$345,649 million, led by a 20.7% increase in R&D spending for 10Å, 14Å, and 16Å process technologies.
reached NT$2,274,976 million, supporting of NT$1,272,411 million mainly for 2nm, 3nm, and 5nm capacity; 2026 capex is expected to be US$52–56 billion.
Income tax expense rose 39.6% to NT$346,530 million on higher taxable income, resulting in a net margin attributable to shareholders of 44.6%.