Taiwan Semiconductor Manufacturing Company (TSMC), the world’s largest semiconductor foundry, has announced robust revenue growth in the first two months of 2025. The company recorded earnings of NT$553.3 billion (US$16.81 billion), marking a significant 39.2% increase from the previous year. This surge in revenue is primarily attributed to the soaring demand for AI chips, particularly from industry giant NVIDIA.
In February 2025, TSMC’s revenue soared to NT$260.01 billion, reflecting a substantial 43.1% rise compared to the same period last year. This achievement represents the highest February sales on record for the company. However, there was an 11.3% decline from January 2025. Analysts are optimistic about TSMC’s revenue outlook for March, with expectations that it could surpass NT$266.7 billion. These projections are in line with TSMC’s first-quarter sales target of NT$820 billion to NT$846.24 billion. Source: TSMC
As the leading global manufacturer of AI chips, TSMC plays a pivotal role in the tech industry ecosystem. The company’s key clients include prominent names such as AMD, Apple, ARM, Broadcom, MediaTek, Qualcomm, and Nvidia. The surge in AI applications has fueled a surge in chip demand, propelling TSMC’s expansion efforts forward.
TSMC recently unveiled ambitious plans to expand its operations in the United States, with a massive $100 billion investment. This investment builds upon its earlier commitment of $65 billion in Phoenix, Arizona, bringing the total investment to $165 billion. The expansion initiative encompasses the construction of three new semiconductor plants, two packaging facilities, and a significant R&D center. This expansion represents the largest foreign direct investment in U.S. history and has the potential to create tens of thousands of high-tech jobs while aiming to generate over $200 billion in economic output over the next decade. Furthermore, the expansion will strengthen TSMC’s partnerships with top U.S. tech firms like Apple, Nvidia, AMD, Broadcom, and Qualcomm. However, a significant challenge facing TSMC in 2025 is the prospect of U.S. tariffs on chip imports.
In a notable development, TSMC’s CEO, C.C. Wei, held discussions with former President Donald Trump at the White House, addressing investment plans and potential tariff concerns.
TSMC has outlined a clear roadmap to achieve net-zero emissions by 2050. The company launched Taiwan’s first Renewable Energy Joint Procurement Model, encouraging suppliers to adopt low-carbon practices. To support these sustainability initiatives, TSMC released its inaugural Climate and Nature Report in 2024, emphasizing the importance of technological advancement while prioritizing environmental stewardship. The company’s commitment to eco-efficiency initiatives underscores its dedication to reducing overall emissions and fostering a greener future.
Emissions data indicates that TSMC experienced a rise in Scope 1 and 2 emissions from 11,558,554 tonnes CO₂e in 2022 to 11,783,418 tonnes CO₂e in 2023, marking a 1.9% increase year-over-year. Scope 3 emissions also increased from 7,429,158 tonnes CO₂e in 2022 to 7,616,655 tonnes CO₂e in 2023. Despite a 31% rise in unit GHG emissions per 12-inch wafer mask layer, exceeding the 9% target set from the 2020 baseline, TSMC remains committed to reducing its overall emissions footprint. Source: TSMC
In 2023, TSMC implemented 822 energy-saving measures, resulting in savings of 830 GWh of electricity and reducing NT$590 million in carbon costs through internal pricing mechanisms. Taiwan’s Industrial Technology Research Institute (ITRI) projects that TSMC’s innovations could elevate global energy savings from 16.9 billion kWh in 2020 to 235.4 billion kWh by 2030. The company’s leadership in energy-efficient semiconductor technology, notably through the production of smaller and more efficient chips, contributes to reduced power consumption across various devices, positioning TSMC as a frontrunner in smarter manufacturing and industry-wide efficiency. Source: TSMC
TSMC has set ambitious sustainability goals, including purchasing 2,592 GWh of renewable energy to cover all overseas operations, representing 11.2% of total usage. The company promotes closed-loop systems to recycle chemicals and packaging, enhancing manufacturing sustainability and energy efficiency. TSMC aims to increase renewable energy usage in new 3nm fabs to over 20% and targets reaching 60% across all operations by 2030. By transitioning from coal to cleaner natural gas and adopting carbon capture technologies, TSMC is committed to reducing emissions. The company also focuses on lowering transportation emissions through greener logistics and aims to achieve 100% renewable energy globally by 2040, a decade ahead of schedule. Leveraging low-carbon energy sources like wind and solar power, TSMC optimizes power consumption for enhanced efficiency while reducing unit water consumption by 30% and increasing reclaimed water use by 60%. Source: TSMC
TSMC remains dedicated to protecting biodiversity and has committed to achieving zero deforestation and no net loss by 2050. The company is actively developing action plans aligned with the Science-Based Targets Network (SBTN) to safeguard nature and achieve net-zero emissions. Through initiatives like the Eco-Plus program in Taichung and ongoing environmental risk assessments, TSMC continues its efforts to promote environmental sustainability.
TSMC’s strong financial performance in early 2025 underscores the increasing demand for AI chips and the company’s pivotal role in the semiconductor industry. Despite challenges related to emissions, TSMC’s unwavering focus on emissions reduction and renewable energy adoption reflects its long-term commitment to sustainability.
