Peter Smith
⬤ Taiwan Semiconductor Manufacturing Company (TSMC) has set expectations for explosive AI chip revenue growth, projecting about 40% compound annual growth rate over the next five years. This forecast represents nearly double the company's historical five-year CAGR. TSMC's trailing twelve-month revenue has climbed steadily over the past decade, jumping from around $20 billion in 2015 to over $100 billion in 2025.
⬤ The numbers tell a compelling story about TSMC's accelerating momentum. Recent growth rates show one-year revenue growth of approximately 37%, two-year growth of roughly 30%, and five-year growth of about 23%. The upward trajectory became particularly pronounced from 2020 forward, with strong surges through 2022 and continuing into 2024-2025. The 40% CAGR guidance for AI chips suggests this segment will expand significantly faster than TSMC's overall historical performance.
⬤ As the world's largest contract semiconductor manufacturer, TSMC supplies the advanced chips powering artificial intelligence, high-performance computing, and data center infrastructure. The company's revenue has shown consistent expansion with minimal pullbacks, and the recent acceleration indicates AI chip demand could become the dominant force driving TSMC's business over the next five years.
Peter Smith
