Major Bank Ratings | CMB International: TSMC's 2025 Financial Performance Strong, Maintains "Outperform" Rating

Glonghui January 20｜CMB International released a research report stating that TSMC's 2025 financial performance is expected to be strong, with revenue reaching $122 billion, a year-on-year increase of 35.9%, and a gross margin of 59.9%. Looking ahead, the company's management expects Q1 revenue this year to be between $34.6 billion and $35.8 billion, with a gross margin of 63% to 65%. The 2026 revenue growth forecast has also been raised to about 30%, higher than its 14% growth outlook for the Foundry 2.0 industry. TSMC has also raised this year's capital expenditure to $52 billion to $56 billion, which the bank believes is a strategic move aimed at meeting customer AI demand and proactively deploying leading-edge process and advanced packaging capacity, in order to seize this multi-year expansion cycle. These initiatives are a positive signal for beneficiaries of the AI supply chain, especially semiconductor equipment manufacturers. The bank maintains its “outperform” rating on TSMC.