TSMC reports record Q4 earnings with endless AI demand

Taiwan Semiconductor Manufacturing Company (TSMC), the world's leading chipmaker, announced record earnings for the fourth quarter. The firm stated that demand for AI chips remains endless, despite concerns over a potential bubble. Customers continue to request more capacity from the company.

TSMC, recognized as the top chipmaker globally, revealed impressive financial results for the final quarter of the year. This achievement comes as the semiconductor industry grapples with worries about an overhyped AI market.

The company's leadership highlighted the unrelenting appetite for advanced chips powering artificial intelligence applications. Executives described the demand as 'endless,' noting that clients persistently seek additional production capacity. This surge underscores TSMC's pivotal role in supplying processors to major tech firms driving AI innovations.

Published on January 16, 2026, the earnings report arrives amid broader economic uncertainties in the tech sector. While fears of an AI bubble persist, TSMC's outlook suggests sustained growth in this area. The firm's position allows it to capitalize on the ongoing expansion of AI technologies worldwide.

Makala yanayohusiana

Photo illustration of SK hynix headquarters with digital displays highlighting record Q3 profits driven by AI chip demand.
Picha iliyoundwa na AI

SK hynix posts record q3 operating profit of 11.38 trillion won

Imeripotiwa na AI Picha iliyoundwa na AI

SK hynix achieved a record quarterly performance in the third quarter, fueled by surging demand for AI chips. Operating profit reached 11.38 trillion won, up significantly from the previous year, with revenue hitting 24.44 trillion won. The results were driven by strong sales of high-bandwidth memory and other high-performance products.

South Korean companies' earnings rose 20 percent year-on-year in 2024, driven by increased semiconductor exports. Government data showed combined before-tax net profits reaching 181.9 trillion won, with the manufacturing sector leading the rebound. The year marked a transitional phase for artificial intelligence, boosting chip demand.

Imeripotiwa na AI

Despite concerns over an AI investment bubble, investors in Taiwan remain committed to the technology. The island nation shows no signs of worry about potential overvaluation in the sector.

Samsung Electronics reported a 21% increase in third-quarter net profit to 12.22 trillion won on October 30. The semiconductor division's record performance, driven by the AI boom, led the gains. Operating profit surged 32.5% to 12.16 trillion won, beating market expectations.

Imeripotiwa na AI

Samsung Electronics Chairman Lee Jae-yong has urged executives to avoid complacency despite a sharp rebound in earnings. In a recent seminar, he invoked his late father Lee Kun-hee's words, stressing that the company faces a 'last chance' to restore its competitiveness. This comes amid a semiconductor upcycle driven by AI demand.

Japanese memory maker Kioxia has announced that its manufacturing capacity is fully booked until the end of 2026, due to surging demand from AI investments. This shortage is expected to keep SSD prices high for both enterprise and consumer markets. Executives warn that companies cannot afford to halt AI spending amid competitive pressures.

Imeripotiwa na AI

Tesla is introducing the AI5 chip, a custom-designed processor aimed at enhancing its AI capabilities across vehicles and robotics. This in-house innovation promises significant performance improvements over previous models. The chip will be produced by Samsung using cutting-edge technology.

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