- 2-nanometer technology entered volume production in 2025, while 16-angstrom development remained on track for planned risk production in 2026. Advanced technologies of 7-nanometers and below increased to 74% of wafer revenue from 69% in 2024; 3-nanometer revenue rose to 24% of wafer revenue.
- TSMC expanded manufacturing output and investment: annual capacity exceeded 17 million 12-inch-equivalent wafers, shipments reached approximately 15.0 million versus 12.9 million in 2024, and 2025 capital expenditures rose to NT$1,272.4 billion, focused mainly on 2-, 3- and 5-nanometer capacity, advanced packaging, and new process R&D.
- Global expansion progressed during the year. TSMC Arizona’s first fab remained in high-volume production, construction of its second fab continued, and construction of its third began in 2025; JASM’s second Kumamoto fab began construction in October 2025. TSMC also continued Fab 20 and Fab 22 expansions and Fab 23/Fab 24 specialty and advanced-packaging projects. These projects were supported by government grants, including up to US$6.6 billion of U.S. CHIPS Act direct funding and up to US$5 billion of proposed loans for Arizona, and up to EUR5 billion of German state aid for ESMC.
- High-performance computing became the dominant operating platform, contributing 58% of 2025 revenue versus 51% in 2024, while smartphone contributed 29%; HPC revenue increased 48% year over year and automotive revenue increased 34%. TSMC also released 3-nanometer automotive-grade N3A to customers at year-end, and its second-generation 16-nanometer MRAM and 22-nanometer RRAM passed Automotive Grade-1 requirements.
- Operations incurred approximately NT$5.3 billion of net earthquake losses from Taiwan earthquakes in January 2025, primarily affecting inventories, machinery and equipment. TSMC reported that the damage was recognized in the first quarter and that no material cybersecurity risk had affected or was reasonably likely to materially affect operations as of the filing date.
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