TSMC forecasts record profit in 2025 on soaring AI demand

Core Viewpoint - TSMC anticipates record earnings in 2025 driven by increased semiconductor production capacity to meet high demand for AI technology [1][2] Group 1: Financial Performance - TSMC's chairman CC Wei stated that revenue and profit for the year are expected to set new historical highs [2] - The company reported sales of NT$349.6 billion (approximately US$11.6 billion) for April, marking a 48.1% increase year-over-year and a 22.2% increase from March [4] Group 2: Production Capacity and Demand - TSMC is increasing production capacity to satisfy the very high demand for AI technology [2] - The company has been under pressure to diversify production locations away from Taiwan due to geopolitical concerns, particularly regarding China [3] Group 3: Geopolitical Context - TSMC has initiated plans for new fabrication plants in the United States, Europe, and Japan to mitigate risks associated with its primary operations in Taiwan [3] - There are rumors about TSMC considering building an advanced facility in the United Arab Emirates, which the chairman dismissed as speculation [4] Group 4: Impact of Tariffs - US tariffs have had some indirect impact on TSMC, but the company remains optimistic about its AI business [2][6] - Despite concerns over potential tariffs affecting chip prices and demand, the company believes its business will remain strong [6][7]