TSMC’s revenue is on an impressive upward trajectory, with analysts projecting that it could reach a staggering $160 billion soon. This comes as the Taiwanese semiconductor giant solidifies its position in the global foundry market, continuing its dominance with cutting-edge manufacturing processes.
A recent update suggests that TSMC’s AI-related revenue could experience a nearly fourfold growth by the end of the decade.
According to analyst Charles Shi from Needham, TSMC’s revenue is set to rise from $114 billion in 2025 to $130 billion in 2026, and could even hit $160 billion by 2027. AI revenue, in particular, is expected to soar from $26 billion in 2025 to a phenomenal $90 billion in 2029. This surge is attributed to the anticipated production ramp-up of NVIDIA’s next-gen Rubin Ultra GPUs, which will be critical to this growth.
TSMC is predicted to maintain its dominant market share, with projections indicating the company will capture 75% of the global foundry market by 2026. This will be supported by the company’s industry-leading 2nm node process, allowing it to continue attracting high-profile clients such as NVIDIA, Apple, and AMD, leaving competitors like Samsung and Intel trailing behind.
Additionally, TSMC’s capital expenditures (CapEx) are expected to rise from $40 billion this year to $45 billion in 2026, with further increases to $50 billion in 2027. This will primarily fund advancements in HBM packaging ahead of the Rubin Ultra’s 2028 launch. TSMC’s expansion is also impacting the local economy, particularly in Taiwan, where the influx of talent to its facilities has driven up real estate prices across the island.