Semiconductor giant TSMC posts slowest growth in 18 months amid AI bubble debate


TSMC, the main contract manufacturer to AI chip leader Nvidia, posted a 16.9 per cent rise in sales for October, the slowest pace since February 2024.

Still, that tracks with the average analyst estimate for a 16 per cent sales increase in the current quarter. TSMC has also been grappling with a strengthening local currency that may have affected its reported revenue. Its shares stood largely unchanged in Taipei on Tuesday.

Industry executives remain buoyant about AI-driven growth, as major tech firms are accelerating investments in data centres. The TSMC revenue gain covers just a single month of business, offering investors less insight.

“TSMC’s seemingly slower 17 per cent year-on-year October sales growth in local currency doesn’t indicate AI chip demand is cooling,” Bloomberg Intelligence analyst Charles Shum said in a report. “The figure is distorted by first-half order pull-ins and a weaker greenback. In US dollar terms, October revenue climbed 22.6 per cent to US$12 billion, from US$9.8 billion a year ago, aligning with the midpoint of fourth-quarter guidance.”

Still, the market is on edge.

C. C Wei (left), the chairman, president and CEO of Taiwan Semiconductor Manufacturing Co, stands beside Nvidia CEO Jensen Huang at the TSMC sports day event in Hsinchu, Taiwan, on November 8, 2025. Photo: AFP
C. C Wei (left), the chairman, president and CEO of Taiwan Semiconductor Manufacturing Co, stands beside Nvidia CEO Jensen Huang at the TSMC sports day event in Hsinchu, Taiwan, on November 8, 2025. Photo: AFP
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