[News] TSMC Projects 20% Revenue CAGR Over the Next Five Years, Driven by AI Demand

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On January 16, TSMC held its earnings call, during which Chairman and CEO C.C. Wei provided insights into the continued growth in AI demand.

As reported by TechNews, Wei underscored that AI demand is expected to remain strong through 2025, positioning it as a key revenue driver for TSMC in the years ahead.

Wei noted that while the foundry 2.0 market grew by 6% in 2024—below initial projections—TSMC achieved an impressive 30% growth, significantly outpacing the industry average.

Looking forward to 2025, TSMC expects the semiconductor industry to grow by approximately 10%, supported by inventory levels returning to health, robust AI growth, and moderate expansion in other sectors. Notably, TSMC projects its own growth to surpass 20%, reaching the mid-20% range.

According to TechNews, Wei reiterated the strength of AI demand and TSMC’s strategic expansion to meet this need in his speech. The company is scaling up its advanced processes, specialty technologies, and advanced packaging capabilities to support the growing AI market.

In 2024, revenues from AI accelerators accounted for mid-teens of TSMC’s total revenue, representing a threefold increase from the previous year. Building on this momentum, revenue from AI accelerators is projected to double again in 2025, citing C.C. Wei.

Wei also indicated that TSMC anticipates its revenue from AI accelerators to achieve a compound annual growth rate (CAGR) of over 40% over the next five years, starting in 2024, fueled by the AI boom and TSMC’s technological advantages.

Moreover, TSMC expects a 20% CAGR for its overall revenue over the next five years, starting in 2024, underlining the company’s strong growth momentum.

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(Photo credit: TSMC)