By Vandita Jadeja
Publication Date: 2026-03-25 16:08:00
Chip maker Taiwan Semiconductor Manufacturing (NYSE:TSM) reported its Q4 2025 results in January, while Broadcom (NASDAQ:AVGO | AVGO Price Prediction) filed its Q1 FY2026 results in March. Both are riding the same AI wave from structurally different positions: one builds fabs, the other designs chips and sells software.
Manufacturing Dominance Meets Custom Silicon Acceleration
TSMC’s quarter demonstrated foundry leverage at scale. Revenue reached $33.73 billion, up 20.4% year-over-year, with gross margin of 62.3% exceeding the company’s own guidance range of 59% to 61%.
Advanced nodes drove the result. Chips built on 7nm processes and below accounted for 77% of wafer revenue, with 3nm alone contributing 28%, the nodes top tech companies rely on for their most demanding silicon.
CEO C.C. Wei confirmed he personally verified demand with cloud providers before committing to a 2026 capital expenditure budget of $52 billion to…
