Chipmaking giant TSMC raises 2025 sales forecast amid AI optimism

TSMC’s move underscores resilient demand for high-end chips from the likes of Nvidia, despite earlier doubts brought by China’s DeepSeek

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TSMC has raised its 2025 outlook on robust demand for AI chips. Photo: Reuters

Published: 5:21pm, 17 Jul 2025

Taiwan Semiconductor Manufacturing Company (TSMC) raised its outlook for 2025 revenue growth, shoring up investors’ confidence in the momentum of the global artificial intelligence spending spree.

The world’s biggest contract chipmaker on Thursday forecast sales growth of about 30 per cent in US dollar terms this year, up from mid-20 per cent previously.

That reinforced expectations that tech firms from Meta Platforms to Google will keep spending to build the data centres essential to AI development. Nasdaq stock index futures swung to gains.

TSMC’s move underscores resilient demand for high-end chips from the likes of Nvidia and Advanced Micro Devices, which is outpacing its production capacity.

CEO C.C. Wei affirmed during a shareholder meeting in June that AI orders continued to run hot, seeking to dispel persistent speculation that tech firms may curtail spending.

Nvidia CEO Jensen Huang leaves the China International Supply Chain Expo in Beijing on Thursday. Photo: AFP

This was “supporting the AI value chain, and AI optimism still holds,” said Billy Leung, investment strategist at Global X ETFs in Sydney.

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