High-Performance ComputingWide moat

TSMC (TSM) — moat facet

The data centre is TSMC now: 58% of 2025 revenue, 66% by mid-2026, and the part of the company that buys every new node first.

High-performance computing is TSMC now. It brought in NT$2,192.9 billion in 2025, 57.6% of revenue, up 48% in a year, and it supplied about 78% of the company's entire increase in sales.12 In the June 2026 quarter it was 66% of revenue and grew 20% on the quarter before, after growing 20% in the March quarter too.34 A reader who wants to know how TSMC is doing can mostly stop at this line.

High-performance computing revenue growth (%, NT$)+28.8%2018-7.6%2019+39.3%2020+33.6%2021+58.6%2022+0.3%2023+58.0%2024+48.5%2025TSMC Forms 20-F FY2019, FY2022 and FY2025, net revenue by platform
One down year and one flat one in eight: the line fell in 2019 and stood still in 2023, and grew 48-59% in the other three of the last four.

What is inside it is set out in the 20-F. The platform covers AI accelerators, both graphics processors and custom application-specific chips, personal-computer CPUs, consumer GPUs, FPGAs, server processors and high-speed networking chips, built on 7-nanometre FinFET and everything newer, down to the 2-nanometre nanosheet.5 The same paragraph folds in the packaging that holds a large AI chip together, CoWoS and SoIC, so this line buys both the most advanced wafers and the most advanced assembly. The packaging bottleneck is its own story, told under The Future Bets in Packaging: CoWoS, CoPoS & the Second Moat.

The history is short because the category is. TSMC reported revenue by application until 2018, and under that scheme computer applications were a minor line: 9% of revenue in the last quarter of 2015.6 It switched to platform reporting in 2019, restating 2017 and 2018, and on that basis high-performance computing was NT$265.4 billion in 2017, 27.2% of revenue.78 It overtook smartphones in 2022, NT$932.4 billion against NT$888.9 billion, and has not looked back.9

How TSMC is paid does not differ from the other lines: by the wafer, at a price set by the node. What differs is which nodes. Because the whole platform sits at 7 nanometres and below, it carries the highest wafer prices in the company and absorbs the start-up cost of each new node. TSMC does not report profit by platform, having one operating segment, so any margin attached to this line is inference.10 The evidence that points one way is that gross margin rose from 54.4% to 59.9% between 2023 and 2025 as this line went from 43% to 58% of revenue, and reached 67.7% in the June 2026 quarter at 66%.1112 The evidence that cuts the other way is that the newest node dilutes before it pays: TSMC guided the September quarter's gross margin down to 66% at the midpoint because the 2-nanometre ramp costs about 3 to 4 points.13

The growth record is the steepest in the company and not smooth. From 2017 to 2025 the line compounded at 30.2% a year, from NT$265.4 billion to NT$2,192.9 billion.141516 It grew 29% in 2018 and then fell 8% in 2019, a year that opened with a 24.5% quarterly drop in company revenue that TSMC put down to weak end demand, customers' inventory correction and a photoresist defect incident.1718 In 2023, when company revenue fell 4.5%, the line was flat, up 0.3%.1920 Then came 58% growth in 2024 and 48% in 2025.21 The two latest quarters, at 20% sequential growth each, put the June quarter's high-performance computing revenue at roughly half as much again as a year earlier, on TSMC's rounded platform shares.2223

Within the line, AI accelerators are the part management sizes. Revenue from AI accelerators "accounted for high-teens percent of our total revenue in 2025", and management forecast that revenue to grow at a compound rate approaching the mid-to-high fifties per cent over 2024 to 2029.24 In July it added a second leg: agentic AI, it said, is bringing back the CPU in the data centre, and almost every CPU architecture is designed by a TSMC customer.25 Full-year 2026 revenue growth was raised to slightly above 40% in US-dollar terms, with the capital budget lifted to US$60 to 64 billion.26

The outlook rests on two things outside TSMC's control. One is whether the data-centre builders keep spending at this pace; the customers themselves, and the concentration that creates, are on the Major Clients pages. The other is whether the line's buyers move some of it elsewhere, which is the subject of Intel: The Rival That Is Also a Customer.

This is the widest part of TSMC's moat and the most exposed part of its revenue at once. The test is the line's share of the year's revenue increase. It was 74% in 2024 and 78% in 2025; the year it falls below half while the line still grows, the rest of TSMC has found its feet, and the year it falls below half because the line stopped growing, the cycle has turned.

Moat trajectory: Widening

Growth of 58% in 2024 and 48% in 2025, 20% sequential growth in each of the last two quarters, and full-year 2026 revenue guided slightly above 40%.

The number that tests this moat
Moat Explorer calc
High-performance computing share of the year's revenue increase
78% in 2025 (NT$716.0bn of NT$914.7bn), from 74% in 2024

Below half while the line still grows would mean the rest of TSMC has found its feet; below half because the line stopped growing would mean the cycle has turned.

How it's calculated: HPC increase NT$716,040M / total increase (3,809,054 - 2,894,308 = 914,746); 2024: 542,122 / 732,572.
Source: TSMC Form 20-F FY2025 (Moat Explorer calc) ↗
References
  1. ReportedIt brought in NT$2,192.9 billion in 2025, 57.6% of revenue, up 48% in a year, and it supplied about 78% of the company's entire increase in sales.
    TSMC Form 20-F FY2025 - net revenue by platform 2023-2025 (NT$ millions): HPC 934,769 / 1,476,891 / 2,192,931; smartphone 814,914 / 1,005,130 / 1,110,816; IoT 161,917 / 165,516 / 191,047; automotive 133,654 / 139,323 / 186,667; digital consumer electronics 47,000 / 47,961 / 47,997; others 69,482 / 59,487 / 79,596; total 2,161,736 / 2,894,308 / 3,809,054; increases from HPC of NT$716,040 million (48%) and NT$542,122 million (58%) and from smartphone of NT$105,686 million (11%) and NT$190,216 million (23%); platform descriptions; only one operating segment, the foundry segment; gross margin 54.4%, 56.1% and 59.9%; 7-nanometer and below 74% of wafer revenue in 2025, up from 69%; ESMC in Dresden (Fab 24) and up to EUR5 billion of German state aid agreed December 2024 — FY2023-FY2025 · publ. April 2026 · source ↗
  2. Moat Explorer calcIt brought in NT$2,192.9 billion in 2025, 57.6% of revenue, up 48% in a year, and it supplied about 78% of the company's entire increase in sales.
    Moat Explorer calculation from TSMC's Forms 20-F FY2019, FY2022 and FY2025 and quarterly management reports: platform shares of revenue (HPC 2,192,931/3,809,054 = 57.6% in 2025 and 265,394/977,447 = 27.2% in 2017; smartphone 29.2% in 2025 and 51.6% in 2017; IoT 5.0% and 5.3%; automotive 4.9% and 4.5%; consumer electronics 1.3% and 6.5%; the four non-HPC lines 72.8% in 2017 and 34% in 2Q26); 2025 revenue increase NT$914,746 million, of which HPC 78.3%, and 2024 NT$732,572 million, of which 74.0%; 2017-2025 compound annual growth HPC 30.2%, automotive 19.8%, IoT 17.7%, smartphone 10.4%, consumer electronics -3.4%; year-on-year changes HPC +28.8%, -7.6%, +39.3%, +33.6%, +58.6%, +0.3%, +58.0%, +48.5% (2018-2025), smartphone 2023 -8.3% and 2020 +23.2%, IoT 2023 -17.4% and 2024 +2.2%, automotive 2022 +73.5%, 2023 +14.8%, 2024 +4.2%, 2025 +34.0%, company revenue 2023 -4.5%; IoT 2025 of NT$191.0 billion 2.6% below 2022's NT$196.1 billion; consumer electronics 2025 23.9% below 2017 while company revenue grew 3.9 times, and 1/46 of HPC in 2025 against 24% in 2017; consumer electronics and others NT$127.6 billion (3.3%); 2Q26 HPC revenue about 66% x NT$1,270.38 billion against 60% x NT$933.79 billion, about half as much again, on rounded platform shares — 2017 to 2Q26 · publ. 2026-09-23 · source ↗
  3. ReportedIn the June 2026 quarter it was 66% of revenue and grew 20% on the quarter before, after growing 20% in the March quarter too.
    TSMC 2Q26 Quarterly Management Report - net revenue NT$1,270.38 billion against NT$933.79 billion in 2Q25; gross margin 67.7%; HPC 66%, smartphone 22%, IoT 5%, automotive 4%, DCE 1%, others 2% of net revenue (2Q25: HPC 60%, smartphone 27%); sequentially, revenue from HPC, IoT, automotive, DCE and others increased 20%, 4%, 15%, 5% and 5%, while smartphone decreased 4%; North America 78% of net revenue; 7nm and below 77% of wafer revenue — 2Q26 · publ. July 16, 2026 · source ↗
  4. ReportedIn the June 2026 quarter it was 66% of revenue and grew 20% on the quarter before, after growing 20% in the March quarter too.
    TSMC 1Q26 Quarterly Management Report - net revenue NT$1,134.10 billion; sequentially, revenue from HPC, IoT, DCE and others increased 20%, 12%, 28% and 17%, while smartphone and automotive decreased 11% and 7%; HPC 61% and smartphone 26% of net revenue — 1Q26 · publ. April 16, 2026 · source ↗
  5. ReportedWhat is inside it is set out in the 20-F. The platform covers AI accelerators, both graphics processors and custom application-specific chips, personal-computer CPUs, consumer GPUs, FPGAs, server processors and high-speed networking chips, built on 7-nanometre FinFET and everything newer, down to the 2-nanometre nanosheet.
    TSMC Form 20-F FY2025 - net revenue by platform 2023-2025 (NT$ millions): HPC 934,769 / 1,476,891 / 2,192,931; smartphone 814,914 / 1,005,130 / 1,110,816; IoT 161,917 / 165,516 / 191,047; automotive 133,654 / 139,323 / 186,667; digital consumer electronics 47,000 / 47,961 / 47,997; others 69,482 / 59,487 / 79,596; total 2,161,736 / 2,894,308 / 3,809,054; increases from HPC of NT$716,040 million (48%) and NT$542,122 million (58%) and from smartphone of NT$105,686 million (11%) and NT$190,216 million (23%); platform descriptions; only one operating segment, the foundry segment; gross margin 54.4%, 56.1% and 59.9%; 7-nanometer and below 74% of wafer revenue in 2025, up from 69%; ESMC in Dresden (Fab 24) and up to EUR5 billion of German state aid agreed December 2024 — FY2023-FY2025 · publ. April 2026 · source ↗
  6. ReportedTSMC reported revenue by application until 2018, and under that scheme computer applications were a minor line: 9% of revenue in the last quarter of 2015.
    TSMC 4Q15 Quarterly Management Report - revenue by application in 4Q15: computer 9%, communication 62%, consumer 6%, industrial/standard 23% — 4Q15 · publ. January 14, 2016 · source ↗
  7. ReportedIt switched to platform reporting in 2019, restating 2017 and 2018, and on that basis high-performance computing was NT$265.4 billion in 2017, 27.2% of revenue.
    TSMC Form 20-F FY2019 - net revenue by platform 2017-2019 on the platform basis adopted in 2019 (NT$ millions): smartphone 504,175 / 466,452 / 523,613; HPC 265,394 / 341,910 / 315,822; IoT 51,776 / 65,092 / 86,343; automotive 43,871 / 51,710 / 47,914; digital consumer electronics 63,097 / 58,470 / 53,733; others 49,134 / 47,840 / 42,560; total 977,447 / 1,031,474 / 1,069,985; 2019 increases from smartphone NT$57,161 million (12%) and IoT NT$21,251 million (33%), offset by HPC down NT$26,088 million (8%); 2018 increases from HPC NT$76,516 million (29%) and IoT NT$13,316 million (26%), offset by smartphone down NT$37,723 million (7%) — FY2017-FY2019 · publ. April 2020 · source ↗
  8. Moat Explorer calcIt switched to platform reporting in 2019, restating 2017 and 2018, and on that basis high-performance computing was NT$265.4 billion in 2017, 27.2% of revenue.
    Moat Explorer calculation from TSMC's Forms 20-F FY2019, FY2022 and FY2025 and quarterly management reports: platform shares of revenue (HPC 2,192,931/3,809,054 = 57.6% in 2025 and 265,394/977,447 = 27.2% in 2017; smartphone 29.2% in 2025 and 51.6% in 2017; IoT 5.0% and 5.3%; automotive 4.9% and 4.5%; consumer electronics 1.3% and 6.5%; the four non-HPC lines 72.8% in 2017 and 34% in 2Q26); 2025 revenue increase NT$914,746 million, of which HPC 78.3%, and 2024 NT$732,572 million, of which 74.0%; 2017-2025 compound annual growth HPC 30.2%, automotive 19.8%, IoT 17.7%, smartphone 10.4%, consumer electronics -3.4%; year-on-year changes HPC +28.8%, -7.6%, +39.3%, +33.6%, +58.6%, +0.3%, +58.0%, +48.5% (2018-2025), smartphone 2023 -8.3% and 2020 +23.2%, IoT 2023 -17.4% and 2024 +2.2%, automotive 2022 +73.5%, 2023 +14.8%, 2024 +4.2%, 2025 +34.0%, company revenue 2023 -4.5%; IoT 2025 of NT$191.0 billion 2.6% below 2022's NT$196.1 billion; consumer electronics 2025 23.9% below 2017 while company revenue grew 3.9 times, and 1/46 of HPC in 2025 against 24% in 2017; consumer electronics and others NT$127.6 billion (3.3%); 2Q26 HPC revenue about 66% x NT$1,270.38 billion against 60% x NT$933.79 billion, about half as much again, on rounded platform shares — 2017 to 2Q26 · publ. 2026-09-23 · source ↗
  9. ReportedIt overtook smartphones in 2022, NT$932.4 billion against NT$888.9 billion, and has not looked back.
    TSMC Form 20-F FY2022 - net revenue by platform 2020-2022 (NT$ millions): HPC 439,810 / 587,780 / 932,384; smartphone 645,304 / 695,091 / 888,879; IoT 110,355 / 133,006 / 196,115; automotive 44,367 / 67,077 / 116,381; digital consumer electronics 54,556 / 55,577 / 56,159; others 44,863 / 48,884 / 73,973; total 1,339,255 / 1,587,415 / 2,263,891; 2022 increases from HPC NT$344,604 million (59%), smartphone NT$193,788 million (28%) and IoT NT$63,109 million (47%); 2021 increases from HPC NT$147,970 million (34%), smartphone NT$49,787 million (8%) and automotive NT$22,710 million (51%) — FY2020-FY2022 · publ. April 2023 · source ↗
  10. ReportedTSMC does not report profit by platform, having one operating segment, so any margin attached to this line is inference.
    TSMC Form 20-F FY2025 - net revenue by platform 2023-2025 (NT$ millions): HPC 934,769 / 1,476,891 / 2,192,931; smartphone 814,914 / 1,005,130 / 1,110,816; IoT 161,917 / 165,516 / 191,047; automotive 133,654 / 139,323 / 186,667; digital consumer electronics 47,000 / 47,961 / 47,997; others 69,482 / 59,487 / 79,596; total 2,161,736 / 2,894,308 / 3,809,054; increases from HPC of NT$716,040 million (48%) and NT$542,122 million (58%) and from smartphone of NT$105,686 million (11%) and NT$190,216 million (23%); platform descriptions; only one operating segment, the foundry segment; gross margin 54.4%, 56.1% and 59.9%; 7-nanometer and below 74% of wafer revenue in 2025, up from 69%; ESMC in Dresden (Fab 24) and up to EUR5 billion of German state aid agreed December 2024 — FY2023-FY2025 · publ. April 2026 · source ↗
  11. ReportedThe evidence that points one way is that gross margin rose from 54.4% to 59.9% between 2023 and 2025 as this line went from 43% to 58% of revenue, and reached 67.7% in the June 2026 quarter at 66%.
    TSMC Form 20-F FY2025 - net revenue by platform 2023-2025 (NT$ millions): HPC 934,769 / 1,476,891 / 2,192,931; smartphone 814,914 / 1,005,130 / 1,110,816; IoT 161,917 / 165,516 / 191,047; automotive 133,654 / 139,323 / 186,667; digital consumer electronics 47,000 / 47,961 / 47,997; others 69,482 / 59,487 / 79,596; total 2,161,736 / 2,894,308 / 3,809,054; increases from HPC of NT$716,040 million (48%) and NT$542,122 million (58%) and from smartphone of NT$105,686 million (11%) and NT$190,216 million (23%); platform descriptions; only one operating segment, the foundry segment; gross margin 54.4%, 56.1% and 59.9%; 7-nanometer and below 74% of wafer revenue in 2025, up from 69%; ESMC in Dresden (Fab 24) and up to EUR5 billion of German state aid agreed December 2024 — FY2023-FY2025 · publ. April 2026 · source ↗
  12. ReportedThe evidence that points one way is that gross margin rose from 54.4% to 59.9% between 2023 and 2025 as this line went from 43% to 58% of revenue, and reached 67.7% in the June 2026 quarter at 66%.
    TSMC 2Q26 Quarterly Management Report - net revenue NT$1,270.38 billion against NT$933.79 billion in 2Q25; gross margin 67.7%; HPC 66%, smartphone 22%, IoT 5%, automotive 4%, DCE 1%, others 2% of net revenue (2Q25: HPC 60%, smartphone 27%); sequentially, revenue from HPC, IoT, automotive, DCE and others increased 20%, 4%, 15%, 5% and 5%, while smartphone decreased 4%; North America 78% of net revenue; 7nm and below 77% of wafer revenue — 2Q26 · publ. July 16, 2026 · source ↗
  13. ReportedThe evidence that cuts the other way is that the newest node dilutes before it pays: TSMC guided the September quarter's gross margin down to 66% at the midpoint because the 2-nanometre ramp costs about 3 to 4 points.
    TSMC 2Q26 earnings call transcript - third-quarter gross margin guided down 1.7 points to 66% at the midpoint as the 2-nanometre ramp dilutes by about 3 to 4 points; full-year 2026 revenue growth slightly above 40% in US dollars; 2026 capital budget raised to US$60-64 billion; agentic AI bringing back the CPU in AI data centres, with x86, Arm and RISC-V designers almost all TSMC customers; mature-node capacity increased at JASM in Japan for CMOS image sensors and ESMC in Germany for automotive and industrial, with commodity mature-node demand outside power management and image sensors not strong — 2Q26 call · publ. July 16, 2026 · source ↗
  14. ReportedFrom 2017 to 2025 the line compounded at 30.2% a year, from NT$265.4 billion to NT$2,192.9 billion.
    TSMC Form 20-F FY2019 - net revenue by platform 2017-2019 on the platform basis adopted in 2019 (NT$ millions): smartphone 504,175 / 466,452 / 523,613; HPC 265,394 / 341,910 / 315,822; IoT 51,776 / 65,092 / 86,343; automotive 43,871 / 51,710 / 47,914; digital consumer electronics 63,097 / 58,470 / 53,733; others 49,134 / 47,840 / 42,560; total 977,447 / 1,031,474 / 1,069,985; 2019 increases from smartphone NT$57,161 million (12%) and IoT NT$21,251 million (33%), offset by HPC down NT$26,088 million (8%); 2018 increases from HPC NT$76,516 million (29%) and IoT NT$13,316 million (26%), offset by smartphone down NT$37,723 million (7%) — FY2017-FY2019 · publ. April 2020 · source ↗
  15. ReportedFrom 2017 to 2025 the line compounded at 30.2% a year, from NT$265.4 billion to NT$2,192.9 billion.
    TSMC Form 20-F FY2025 - net revenue by platform 2023-2025 (NT$ millions): HPC 934,769 / 1,476,891 / 2,192,931; smartphone 814,914 / 1,005,130 / 1,110,816; IoT 161,917 / 165,516 / 191,047; automotive 133,654 / 139,323 / 186,667; digital consumer electronics 47,000 / 47,961 / 47,997; others 69,482 / 59,487 / 79,596; total 2,161,736 / 2,894,308 / 3,809,054; increases from HPC of NT$716,040 million (48%) and NT$542,122 million (58%) and from smartphone of NT$105,686 million (11%) and NT$190,216 million (23%); platform descriptions; only one operating segment, the foundry segment; gross margin 54.4%, 56.1% and 59.9%; 7-nanometer and below 74% of wafer revenue in 2025, up from 69%; ESMC in Dresden (Fab 24) and up to EUR5 billion of German state aid agreed December 2024 — FY2023-FY2025 · publ. April 2026 · source ↗
  16. Moat Explorer calcFrom 2017 to 2025 the line compounded at 30.2% a year, from NT$265.4 billion to NT$2,192.9 billion.
    Moat Explorer calculation from TSMC's Forms 20-F FY2019, FY2022 and FY2025 and quarterly management reports: platform shares of revenue (HPC 2,192,931/3,809,054 = 57.6% in 2025 and 265,394/977,447 = 27.2% in 2017; smartphone 29.2% in 2025 and 51.6% in 2017; IoT 5.0% and 5.3%; automotive 4.9% and 4.5%; consumer electronics 1.3% and 6.5%; the four non-HPC lines 72.8% in 2017 and 34% in 2Q26); 2025 revenue increase NT$914,746 million, of which HPC 78.3%, and 2024 NT$732,572 million, of which 74.0%; 2017-2025 compound annual growth HPC 30.2%, automotive 19.8%, IoT 17.7%, smartphone 10.4%, consumer electronics -3.4%; year-on-year changes HPC +28.8%, -7.6%, +39.3%, +33.6%, +58.6%, +0.3%, +58.0%, +48.5% (2018-2025), smartphone 2023 -8.3% and 2020 +23.2%, IoT 2023 -17.4% and 2024 +2.2%, automotive 2022 +73.5%, 2023 +14.8%, 2024 +4.2%, 2025 +34.0%, company revenue 2023 -4.5%; IoT 2025 of NT$191.0 billion 2.6% below 2022's NT$196.1 billion; consumer electronics 2025 23.9% below 2017 while company revenue grew 3.9 times, and 1/46 of HPC in 2025 against 24% in 2017; consumer electronics and others NT$127.6 billion (3.3%); 2Q26 HPC revenue about 66% x NT$1,270.38 billion against 60% x NT$933.79 billion, about half as much again, on rounded platform shares — 2017 to 2Q26 · publ. 2026-09-23 · source ↗
  17. ReportedIt grew 29% in 2018 and then fell 8% in 2019, a year that opened with a 24.5% quarterly drop in company revenue that TSMC put down to weak end demand, customers' inventory correction and a photoresist defect incident.
    TSMC Form 20-F FY2019 - net revenue by platform 2017-2019 on the platform basis adopted in 2019 (NT$ millions): smartphone 504,175 / 466,452 / 523,613; HPC 265,394 / 341,910 / 315,822; IoT 51,776 / 65,092 / 86,343; automotive 43,871 / 51,710 / 47,914; digital consumer electronics 63,097 / 58,470 / 53,733; others 49,134 / 47,840 / 42,560; total 977,447 / 1,031,474 / 1,069,985; 2019 increases from smartphone NT$57,161 million (12%) and IoT NT$21,251 million (33%), offset by HPC down NT$26,088 million (8%); 2018 increases from HPC NT$76,516 million (29%) and IoT NT$13,316 million (26%), offset by smartphone down NT$37,723 million (7%) — FY2017-FY2019 · publ. April 2020 · source ↗
  18. ReportedIt grew 29% in 2018 and then fell 8% in 2019, a year that opened with a 24.5% quarterly drop in company revenue that TSMC put down to weak end demand, customers' inventory correction and a photoresist defect incident.
    TSMC 1Q19 Quarterly Management Report - revenue decreased 24.5% quarter over quarter, attributed to global economic conditions, customers' inventory correction, lower seasonality of high-end smartphones and the photoresist defect material incident — 1Q19 · publ. April 18, 2019 · source ↗
  19. ReportedIn 2023, when company revenue fell 4.5%, the line was flat, up 0.3%.
    TSMC Form 20-F FY2025 - net revenue by platform 2023-2025 (NT$ millions): HPC 934,769 / 1,476,891 / 2,192,931; smartphone 814,914 / 1,005,130 / 1,110,816; IoT 161,917 / 165,516 / 191,047; automotive 133,654 / 139,323 / 186,667; digital consumer electronics 47,000 / 47,961 / 47,997; others 69,482 / 59,487 / 79,596; total 2,161,736 / 2,894,308 / 3,809,054; increases from HPC of NT$716,040 million (48%) and NT$542,122 million (58%) and from smartphone of NT$105,686 million (11%) and NT$190,216 million (23%); platform descriptions; only one operating segment, the foundry segment; gross margin 54.4%, 56.1% and 59.9%; 7-nanometer and below 74% of wafer revenue in 2025, up from 69%; ESMC in Dresden (Fab 24) and up to EUR5 billion of German state aid agreed December 2024 — FY2023-FY2025 · publ. April 2026 · source ↗
  20. Moat Explorer calcIn 2023, when company revenue fell 4.5%, the line was flat, up 0.3%.
    Moat Explorer calculation from TSMC's Forms 20-F FY2019, FY2022 and FY2025 and quarterly management reports: platform shares of revenue (HPC 2,192,931/3,809,054 = 57.6% in 2025 and 265,394/977,447 = 27.2% in 2017; smartphone 29.2% in 2025 and 51.6% in 2017; IoT 5.0% and 5.3%; automotive 4.9% and 4.5%; consumer electronics 1.3% and 6.5%; the four non-HPC lines 72.8% in 2017 and 34% in 2Q26); 2025 revenue increase NT$914,746 million, of which HPC 78.3%, and 2024 NT$732,572 million, of which 74.0%; 2017-2025 compound annual growth HPC 30.2%, automotive 19.8%, IoT 17.7%, smartphone 10.4%, consumer electronics -3.4%; year-on-year changes HPC +28.8%, -7.6%, +39.3%, +33.6%, +58.6%, +0.3%, +58.0%, +48.5% (2018-2025), smartphone 2023 -8.3% and 2020 +23.2%, IoT 2023 -17.4% and 2024 +2.2%, automotive 2022 +73.5%, 2023 +14.8%, 2024 +4.2%, 2025 +34.0%, company revenue 2023 -4.5%; IoT 2025 of NT$191.0 billion 2.6% below 2022's NT$196.1 billion; consumer electronics 2025 23.9% below 2017 while company revenue grew 3.9 times, and 1/46 of HPC in 2025 against 24% in 2017; consumer electronics and others NT$127.6 billion (3.3%); 2Q26 HPC revenue about 66% x NT$1,270.38 billion against 60% x NT$933.79 billion, about half as much again, on rounded platform shares — 2017 to 2Q26 · publ. 2026-09-23 · source ↗
  21. ReportedThen came 58% growth in 2024 and 48% in 2025.
    TSMC Form 20-F FY2025 - net revenue by platform 2023-2025 (NT$ millions): HPC 934,769 / 1,476,891 / 2,192,931; smartphone 814,914 / 1,005,130 / 1,110,816; IoT 161,917 / 165,516 / 191,047; automotive 133,654 / 139,323 / 186,667; digital consumer electronics 47,000 / 47,961 / 47,997; others 69,482 / 59,487 / 79,596; total 2,161,736 / 2,894,308 / 3,809,054; increases from HPC of NT$716,040 million (48%) and NT$542,122 million (58%) and from smartphone of NT$105,686 million (11%) and NT$190,216 million (23%); platform descriptions; only one operating segment, the foundry segment; gross margin 54.4%, 56.1% and 59.9%; 7-nanometer and below 74% of wafer revenue in 2025, up from 69%; ESMC in Dresden (Fab 24) and up to EUR5 billion of German state aid agreed December 2024 — FY2023-FY2025 · publ. April 2026 · source ↗
  22. ReportedThe two latest quarters, at 20% sequential growth each, put the June quarter's high-performance computing revenue at roughly half as much again as a year earlier, on TSMC's rounded platform shares.
    TSMC 2Q26 Quarterly Management Report - net revenue NT$1,270.38 billion against NT$933.79 billion in 2Q25; gross margin 67.7%; HPC 66%, smartphone 22%, IoT 5%, automotive 4%, DCE 1%, others 2% of net revenue (2Q25: HPC 60%, smartphone 27%); sequentially, revenue from HPC, IoT, automotive, DCE and others increased 20%, 4%, 15%, 5% and 5%, while smartphone decreased 4%; North America 78% of net revenue; 7nm and below 77% of wafer revenue — 2Q26 · publ. July 16, 2026 · source ↗
  23. Moat Explorer calcThe two latest quarters, at 20% sequential growth each, put the June quarter's high-performance computing revenue at roughly half as much again as a year earlier, on TSMC's rounded platform shares.
    Moat Explorer calculation from TSMC's Forms 20-F FY2019, FY2022 and FY2025 and quarterly management reports: platform shares of revenue (HPC 2,192,931/3,809,054 = 57.6% in 2025 and 265,394/977,447 = 27.2% in 2017; smartphone 29.2% in 2025 and 51.6% in 2017; IoT 5.0% and 5.3%; automotive 4.9% and 4.5%; consumer electronics 1.3% and 6.5%; the four non-HPC lines 72.8% in 2017 and 34% in 2Q26); 2025 revenue increase NT$914,746 million, of which HPC 78.3%, and 2024 NT$732,572 million, of which 74.0%; 2017-2025 compound annual growth HPC 30.2%, automotive 19.8%, IoT 17.7%, smartphone 10.4%, consumer electronics -3.4%; year-on-year changes HPC +28.8%, -7.6%, +39.3%, +33.6%, +58.6%, +0.3%, +58.0%, +48.5% (2018-2025), smartphone 2023 -8.3% and 2020 +23.2%, IoT 2023 -17.4% and 2024 +2.2%, automotive 2022 +73.5%, 2023 +14.8%, 2024 +4.2%, 2025 +34.0%, company revenue 2023 -4.5%; IoT 2025 of NT$191.0 billion 2.6% below 2022's NT$196.1 billion; consumer electronics 2025 23.9% below 2017 while company revenue grew 3.9 times, and 1/46 of HPC in 2025 against 24% in 2017; consumer electronics and others NT$127.6 billion (3.3%); 2Q26 HPC revenue about 66% x NT$1,270.38 billion against 60% x NT$933.79 billion, about half as much again, on rounded platform shares — 2017 to 2Q26 · publ. 2026-09-23 · source ↗
  24. ReportedRevenue from AI accelerators "accounted for high-teens percent of our total revenue in 2025", and management forecast that revenue to grow at a compound rate approaching the mid-to-high fifties per cent over 2024 to 2029.
    TSMC 4Q25 earnings call transcript - in 4Q25 DCE decreased 22%; for 2025 HPC increased 48% and smartphone, IoT and automotive 11%, 15% and 34%, while DCE remained flat; revenue from AI accelerators accounted for high-teens percent of total revenue in 2025, with AI accelerator revenue growth forecast to approach a mid-to-high-fifties per cent CAGR for 2024-2029; N2 entered high-volume manufacturing in 4Q25 with strong demand from smartphone and HPC/AI; TSMC supplies most high-end smartphones, which are less sensitive to memory prices — 4Q25 call · publ. January 15, 2026 · source ↗
  25. ReportedIn July it added a second leg: agentic AI, it said, is bringing back the CPU in the data centre, and almost every CPU architecture is designed by a TSMC customer.
    TSMC 2Q26 earnings call transcript - third-quarter gross margin guided down 1.7 points to 66% at the midpoint as the 2-nanometre ramp dilutes by about 3 to 4 points; full-year 2026 revenue growth slightly above 40% in US dollars; 2026 capital budget raised to US$60-64 billion; agentic AI bringing back the CPU in AI data centres, with x86, Arm and RISC-V designers almost all TSMC customers; mature-node capacity increased at JASM in Japan for CMOS image sensors and ESMC in Germany for automotive and industrial, with commodity mature-node demand outside power management and image sensors not strong — 2Q26 call · publ. July 16, 2026 · source ↗
  26. ReportedFull-year 2026 revenue growth was raised to slightly above 40% in US-dollar terms, with the capital budget lifted to US$60 to 64 billion.
    TSMC 2Q26 earnings call transcript - third-quarter gross margin guided down 1.7 points to 66% at the midpoint as the 2-nanometre ramp dilutes by about 3 to 4 points; full-year 2026 revenue growth slightly above 40% in US dollars; 2026 capital budget raised to US$60-64 billion; agentic AI bringing back the CPU in AI data centres, with x86, Arm and RISC-V designers almost all TSMC customers; mature-node capacity increased at JASM in Japan for CMOS image sensors and ESMC in Germany for automotive and industrial, with commodity mature-node demand outside power management and image sensors not strong — 2Q26 call · publ. July 16, 2026 · source ↗
Sources
Generated September 23, 2026