"Taiwan Semiconductor Manufacturing Company (NYSE:TSM) is expanding production of advanced AI semiconductors to Japan, marking a significant geographic diversification for the world's leading chipmaker. The move addresses surging demand for cutting-edge chips while reducing geopolitical risk tied to Taiwan-based manufacturing. The expansion comes as TSMC reported Q4 2025 revenue of $33.73 billion, up 20.5% year-over-year, with net income climbing 35% to $15.2 billion."
"Advanced technologies at 7-nanometer and below now represent 77% of wafer revenue, underscoring the company's dominance in AI chip manufacturing. TSMC's Q1 2026 guidance of $34.6 billion to $35.8 billion in revenue signals continued momentum. Japan's appeal extends beyond subsidies. The country offers supply chain proximity to key customers and reduces concentration risk in Taiwan, which remains a geopolitical flashpoint. TSMC already operates facilities in Arizona, demonstrating its commitment to geographic diversification."
TSMC is expanding advanced AI semiconductor production to Japan to diversify manufacturing locations and address rising demand while mitigating Taiwan-related geopolitical risk. Q4 2025 revenue totaled $33.73 billion, up 20.5% year-over-year, and net income rose 35% to $15.2 billion. Advanced nodes at 7-nanometer and below constitute 77% of wafer revenue, reflecting leadership in AI chip manufacturing. Q1 2026 guidance of $34.6–$35.8 billion indicates continued momentum. Japan offers subsidies, closer supply-chain proximity to key customers, and reduced concentration risk; TSMC also operates U.S. facilities in Arizona. Major customers and equipment suppliers stand to benefit.
Read at 24/7 Wall St.
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