International Data Corp told the Taipei Times it expects Taiwan Semiconductor Manufacturing Co (NYSE:TSM) to grow its revenue by ~25% in 2025, backed by artificial intelligence (AI) applications and crypto mining technologies.

IDC expects the global semiconductor industry to grow by 15% and the international foundry market to rise by 20% in 2025.

IDC’s projections imply that the contract chipmaker will command a 67% share of the global foundry market in 2025, up 300 bps year over year.

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In the broader foundry definition, Taiwan Semiconductor could expand its market share to 36% in 2025 from 33% in 2024, IDC told the Taiwan Times.

Zeng told the Taipei Times that the contract chipmaker is fast-tracking production of 3-nm, 4-nm, and 5-nm chips by the shortest production cycle to accomplish the demand frenzy. The utilization rate of those technology nodes crossed the 95% mark.

Zeng said Taiwan Semiconductor targets adding 70,000 advanced wafers a month to its existing capacity for 2-nm, 3-nm, 4-nm, and 5-nm chips in 2025.

IDC expects the Nvidia Corp (NASDAQ:NVDA) supplier to double its capacity of advanced packaging technology, or chip-on-wafer-on-silicon (CoWoS), to double to 660,000 units in 2025 from 330,000 units in 2024.

IDC cited Taiwan Semiconductor commencing volume production of 2-nm technology in the second half of 2025, with a small volume shipped to Apple Inc (NASDAQ:AAPL) by 2026.

Taiwan Semiconductor’s November 2024 revenue grew 34% to $8.55 billion. The company’s market share grew to 64.9%, up from 62.3% sequentially, thanks to the smartphone and AI-related demand for its 3-nm and 5-nm technologies.

Taiwan Semiconductor stock surged 89% year-to-date.

Price Action: TSM stock is up 2.21% at $195.70 premarket at the last check Friday.

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