Taiwan Semiconductor Manufacturing Co. (TSMC) expects steady growth in 2025 despite global uncertainty.

This growth is driven by advancements in technologies such as 5G, AI, and high-performance computing (HPC), according to the company’s 2024 annual report.

Chairman and CEO C.C. Wei announced that TSMC’s N2 (2 nanometer) process is on track for volume production in the latter half of 2025.

Additionally, the A16 process, which uses nanosheet technology for HPC applications, is projected to begin mass production by the end of 2026.

Advanced semiconductor technologies, which include processes at 7 nanometers and below, are predicted to account for up to 80% of the company’s total wafer revenue in 2025.

🔗 Source: Focus Taiwan

🧠 Food for thought

1️⃣ Weathering economic cycles through strategic recovery patterns

TSMC’s confidence in projecting 2025 growth despite global economic uncertainty reflects a company that has learned to navigate downturns effectively.

During the 2009 global financial crisis, TSMC experienced severe challenges, reducing its workforce by 3.8% from 22,800 to about 22,000 employees by February 2009 1.

However, when business conditions improved, with revenues jumping 58.1% from NT$14.2 billion in March to NT$22.45 billion in April 2009, the company quickly shifted to rehiring those employees 1.

This cyclical resilience continues today as TSMC maintains ambitious expansion plans and technological advancement targets despite global economic uncertainties. It demonstrates how semiconductor companies must balance conservative operations during downturns with aggressive reinvestment during recovery phases.

The company’s current confidence stems partly from lessons learned during previous cycles, when hesitation to reinvest during early recovery stages could surrender market advantage to competitors.

2️⃣ Technology leadership maintained through consistent capital investment

TSMC’s current transition to N2 (2nm) and A16 processes continues a long-established pattern of aggressive investment in cutting-edge technology that has secured its industry leadership.

The company historically increased capital expenditure by approximately 40% annually to maintain its competitive edge, particularly for advancing to smaller process nodes 2.