Internet of ThingsNarrow moat

TSMC (TSM) — moat facet

A low-power, mostly mature-node line that boomed in 2022, fell 17% in 2023 and has still not climbed back to its peak.

The internet-of-things line is small and cyclical, and it has not recovered from its last downturn. It brought in NT$191.0 billion in 2025, 5.0% of revenue, up 15% on the year, which still left it below the NT$196.1 billion it reached in 2022.123 In the June 2026 quarter it was 5% of revenue, growing 4% on the quarter after 12% in March.45

Internet-of-things platform revenue (NT$ billion)51.8201765.1201886.32019110.42020133.02021196.12022161.92023165.52024191.02025TSMC Forms 20-F FY2019, FY2022 and FY2025, net revenue by platform
Five years of steady growth, a 2022 peak, a 17% fall, and three years later still just below the old high.

What the line sells is low power. The 20-F describes it by three trends, "Everything Connected, Smart and Green," and by an ultra-low-power platform built on both FinFET processes, 4 to 28 nanometres, and planar ones: 22-nanometre ultra-low leakage and 28-, 40- and 55-nanometre ultra-low power, which it says are widely used in IoT system-on-chips and battery-powered products.6 Its 6- and 12-nanometre low-power services are in volume production, with a 4-nanometre version in development, and the platform also sells radio frequency, analog, embedded memory, sensors, display and power-management technologies.7 The filing ties the line to what it calls AIoT and edge AI: devices that run small AI models locally on a battery.

Before 2019 there was no such line; TSMC reported by application and these chips were spread across communication, consumer and industrial.8 On the restated platform basis the line was NT$51.8 billion in 2017, 5.3% of revenue.910

With a single reporting segment, TSMC leaves the line's earnings to inference.11 Two disclosures bear on them. The first is that much of the line sits on mature nodes, whose factories were depreciated long ago. The second cuts against that: in July management said that outside specific areas such as power management and CMOS image sensors, mature-node demand in commodity areas was not that strong, and that TSMC would focus on higher value-added segments.12 A line built partly on commodity mature nodes is exposed to exactly the weakness the company is steering away from.

The growth record has one boom and one bust. From 2017 to 2025 the line compounded at 17.7% a year, to 3.7 times its starting revenue.131415 It grew 26% in 2018 and 33% in 2019, when TSMC named it as one of the two sources of that year's increase, and 47% in 2022, to NT$196.1 billion, 8.7% of revenue.161718 Then it fell 17.4% in 2023, to NT$161.9 billion, in the downturn TSMC blamed on soft end demand and customers' inventory adjustment.192021 Revenue from the line fell 19% on the quarter in the March 2023 quarter alone.22 It barely moved in 2024, up 2.2%, and rose 15% in 2025.232425 The quarterly figures show how jumpy the recovery has been: revenue from the line rose 35% on the quarter in September 2024, fell 9% in March 2025, rose 14% in June and 20% in September 2025, and then slowed to 3%, 12% and 4% in the next three quarters.26272829303132 A line that swings by a third in a quarter on the way up can do the same on the way down.

The 2022 peak is the part worth dwelling on. TSMC's own explanation for the fall that followed was customers' inventory adjustment, not lost share. That it took until 2025 to come close to the old level says either that 2022 was flattered by customers building stock or that the market grew more slowly afterwards, and the filings do not let a reader separate the two.

The outlook is modest. The line's customers design chips that sell for small sums, so they are the ones most tempted by cheaper foundries on the older nodes; SMIC and the Chinese foundry build-out are covered under Competitors, in SMIC and the Foundry Industry China Is Building Instead, and the trailing-edge contest in The Trailing Edge TSMC Declines to Fight For. Against that, edge AI, the running of small models on devices, gives the line a reason to move to newer, more expensive processes, which is where TSMC wants it.

Call it a narrow business inside a wide company: TSMC's technology helps, but these customers can and do shop around. What would change that view is the line's 2026 revenue against NT$196.1 billion. Passing the 2022 peak would show the edge-AI shift is real; another year below it would say the line is settling into a slow, low-growth share of a company growing around it.

Moat trajectory: Holding steady

Up 15% in 2025 after a flat 2024, still below the 2022 peak; management says commodity mature-node demand is not strong.

The number that tests this moat
Moat Explorer calc
Internet-of-things revenue against its 2022 peak
NT$191.0bn in 2025, 2.6% below NT$196.1bn in 2022

Passing the 2022 peak would show edge AI is pulling these customers onto newer processes; another year below it says the line is settling into slow growth.

How it's calculated: 191,047 / 196,115 - 1 = -2.6%.
Source: TSMC Forms 20-F FY2022 and FY2025 (Moat Explorer calc) ↗
References
  1. ReportedIt brought in NT$191.0 billion in 2025, 5.0% of revenue, up 15% on the year, which still left it below the NT$196.1 billion it reached in 2022.
    TSMC Form 20-F FY2025 - net revenue by platform 2023-2025 (NT$ millions): HPC 934,769 / 1,476,891 / 2,192,931; smartphone 814,914 / 1,005,130 / 1,110,816; IoT 161,917 / 165,516 / 191,047; automotive 133,654 / 139,323 / 186,667; digital consumer electronics 47,000 / 47,961 / 47,997; others 69,482 / 59,487 / 79,596; total 2,161,736 / 2,894,308 / 3,809,054; increases from HPC of NT$716,040 million (48%) and NT$542,122 million (58%) and from smartphone of NT$105,686 million (11%) and NT$190,216 million (23%); platform descriptions; only one operating segment, the foundry segment; gross margin 54.4%, 56.1% and 59.9%; 7-nanometer and below 74% of wafer revenue in 2025, up from 69%; ESMC in Dresden (Fab 24) and up to EUR5 billion of German state aid agreed December 2024 — FY2023-FY2025 · publ. April 2026 · source ↗
  2. ReportedIt brought in NT$191.0 billion in 2025, 5.0% of revenue, up 15% on the year, which still left it below the NT$196.1 billion it reached in 2022.
    TSMC Form 20-F FY2022 - net revenue by platform 2020-2022 (NT$ millions): HPC 439,810 / 587,780 / 932,384; smartphone 645,304 / 695,091 / 888,879; IoT 110,355 / 133,006 / 196,115; automotive 44,367 / 67,077 / 116,381; digital consumer electronics 54,556 / 55,577 / 56,159; others 44,863 / 48,884 / 73,973; total 1,339,255 / 1,587,415 / 2,263,891; 2022 increases from HPC NT$344,604 million (59%), smartphone NT$193,788 million (28%) and IoT NT$63,109 million (47%); 2021 increases from HPC NT$147,970 million (34%), smartphone NT$49,787 million (8%) and automotive NT$22,710 million (51%) — FY2020-FY2022 · publ. April 2023 · source ↗
  3. Moat Explorer calcIt brought in NT$191.0 billion in 2025, 5.0% of revenue, up 15% on the year, which still left it below the NT$196.1 billion it reached in 2022.
    Moat Explorer calculation from TSMC's Forms 20-F FY2019, FY2022 and FY2025 and quarterly management reports: platform shares of revenue (HPC 2,192,931/3,809,054 = 57.6% in 2025 and 265,394/977,447 = 27.2% in 2017; smartphone 29.2% in 2025 and 51.6% in 2017; IoT 5.0% and 5.3%; automotive 4.9% and 4.5%; consumer electronics 1.3% and 6.5%; the four non-HPC lines 72.8% in 2017 and 34% in 2Q26); 2025 revenue increase NT$914,746 million, of which HPC 78.3%, and 2024 NT$732,572 million, of which 74.0%; 2017-2025 compound annual growth HPC 30.2%, automotive 19.8%, IoT 17.7%, smartphone 10.4%, consumer electronics -3.4%; year-on-year changes HPC +28.8%, -7.6%, +39.3%, +33.6%, +58.6%, +0.3%, +58.0%, +48.5% (2018-2025), smartphone 2023 -8.3% and 2020 +23.2%, IoT 2023 -17.4% and 2024 +2.2%, automotive 2022 +73.5%, 2023 +14.8%, 2024 +4.2%, 2025 +34.0%, company revenue 2023 -4.5%; IoT 2025 of NT$191.0 billion 2.6% below 2022's NT$196.1 billion; consumer electronics 2025 23.9% below 2017 while company revenue grew 3.9 times, and 1/46 of HPC in 2025 against 24% in 2017; consumer electronics and others NT$127.6 billion (3.3%); 2Q26 HPC revenue about 66% x NT$1,270.38 billion against 60% x NT$933.79 billion, about half as much again, on rounded platform shares — 2017 to 2Q26 · publ. 2026-09-23 · source ↗
  4. ReportedIn the June 2026 quarter it was 5% of revenue, growing 4% on the quarter after 12% in March.
    TSMC 2Q26 Quarterly Management Report - net revenue NT$1,270.38 billion against NT$933.79 billion in 2Q25; gross margin 67.7%; HPC 66%, smartphone 22%, IoT 5%, automotive 4%, DCE 1%, others 2% of net revenue (2Q25: HPC 60%, smartphone 27%); sequentially, revenue from HPC, IoT, automotive, DCE and others increased 20%, 4%, 15%, 5% and 5%, while smartphone decreased 4%; North America 78% of net revenue; 7nm and below 77% of wafer revenue — 2Q26 · publ. July 16, 2026 · source ↗
  5. ReportedIn the June 2026 quarter it was 5% of revenue, growing 4% on the quarter after 12% in March.
    TSMC 1Q26 Quarterly Management Report - net revenue NT$1,134.10 billion; sequentially, revenue from HPC, IoT, DCE and others increased 20%, 12%, 28% and 17%, while smartphone and automotive decreased 11% and 7%; HPC 61% and smartphone 26% of net revenue — 1Q26 · publ. April 16, 2026 · source ↗
  6. ReportedThe 20-F describes it by three trends, "Everything Connected, Smart and Green," and by an ultra-low-power platform built on both FinFET processes, 4 to 28 nanometres, and planar ones: 22-nanometre ultra-low leakage and 28-, 40- and 55-nanometre ultra-low power, which it says are widely used in IoT system-on-chips and battery-powered products.
    TSMC Form 20-F FY2025 - net revenue by platform 2023-2025 (NT$ millions): HPC 934,769 / 1,476,891 / 2,192,931; smartphone 814,914 / 1,005,130 / 1,110,816; IoT 161,917 / 165,516 / 191,047; automotive 133,654 / 139,323 / 186,667; digital consumer electronics 47,000 / 47,961 / 47,997; others 69,482 / 59,487 / 79,596; total 2,161,736 / 2,894,308 / 3,809,054; increases from HPC of NT$716,040 million (48%) and NT$542,122 million (58%) and from smartphone of NT$105,686 million (11%) and NT$190,216 million (23%); platform descriptions; only one operating segment, the foundry segment; gross margin 54.4%, 56.1% and 59.9%; 7-nanometer and below 74% of wafer revenue in 2025, up from 69%; ESMC in Dresden (Fab 24) and up to EUR5 billion of German state aid agreed December 2024 — FY2023-FY2025 · publ. April 2026 · source ↗
  7. ReportedIts 6- and 12-nanometre low-power services are in volume production, with a 4-nanometre version in development, and the platform also sells radio frequency, analog, embedded memory, sensors, display and power-management technologies.
    TSMC Form 20-F FY2025 - net revenue by platform 2023-2025 (NT$ millions): HPC 934,769 / 1,476,891 / 2,192,931; smartphone 814,914 / 1,005,130 / 1,110,816; IoT 161,917 / 165,516 / 191,047; automotive 133,654 / 139,323 / 186,667; digital consumer electronics 47,000 / 47,961 / 47,997; others 69,482 / 59,487 / 79,596; total 2,161,736 / 2,894,308 / 3,809,054; increases from HPC of NT$716,040 million (48%) and NT$542,122 million (58%) and from smartphone of NT$105,686 million (11%) and NT$190,216 million (23%); platform descriptions; only one operating segment, the foundry segment; gross margin 54.4%, 56.1% and 59.9%; 7-nanometer and below 74% of wafer revenue in 2025, up from 69%; ESMC in Dresden (Fab 24) and up to EUR5 billion of German state aid agreed December 2024 — FY2023-FY2025 · publ. April 2026 · source ↗
  8. ReportedBefore 2019 there was no such line; TSMC reported by application and these chips were spread across communication, consumer and industrial.
    TSMC 4Q15 Quarterly Management Report - revenue by application in 4Q15: computer 9%, communication 62%, consumer 6%, industrial/standard 23% — 4Q15 · publ. January 14, 2016 · source ↗
  9. ReportedOn the restated platform basis the line was NT$51.8 billion in 2017, 5.3% of revenue.
    TSMC Form 20-F FY2019 - net revenue by platform 2017-2019 on the platform basis adopted in 2019 (NT$ millions): smartphone 504,175 / 466,452 / 523,613; HPC 265,394 / 341,910 / 315,822; IoT 51,776 / 65,092 / 86,343; automotive 43,871 / 51,710 / 47,914; digital consumer electronics 63,097 / 58,470 / 53,733; others 49,134 / 47,840 / 42,560; total 977,447 / 1,031,474 / 1,069,985; 2019 increases from smartphone NT$57,161 million (12%) and IoT NT$21,251 million (33%), offset by HPC down NT$26,088 million (8%); 2018 increases from HPC NT$76,516 million (29%) and IoT NT$13,316 million (26%), offset by smartphone down NT$37,723 million (7%) — FY2017-FY2019 · publ. April 2020 · source ↗
  10. Moat Explorer calcOn the restated platform basis the line was NT$51.8 billion in 2017, 5.3% of revenue.
    Moat Explorer calculation from TSMC's Forms 20-F FY2019, FY2022 and FY2025 and quarterly management reports: platform shares of revenue (HPC 2,192,931/3,809,054 = 57.6% in 2025 and 265,394/977,447 = 27.2% in 2017; smartphone 29.2% in 2025 and 51.6% in 2017; IoT 5.0% and 5.3%; automotive 4.9% and 4.5%; consumer electronics 1.3% and 6.5%; the four non-HPC lines 72.8% in 2017 and 34% in 2Q26); 2025 revenue increase NT$914,746 million, of which HPC 78.3%, and 2024 NT$732,572 million, of which 74.0%; 2017-2025 compound annual growth HPC 30.2%, automotive 19.8%, IoT 17.7%, smartphone 10.4%, consumer electronics -3.4%; year-on-year changes HPC +28.8%, -7.6%, +39.3%, +33.6%, +58.6%, +0.3%, +58.0%, +48.5% (2018-2025), smartphone 2023 -8.3% and 2020 +23.2%, IoT 2023 -17.4% and 2024 +2.2%, automotive 2022 +73.5%, 2023 +14.8%, 2024 +4.2%, 2025 +34.0%, company revenue 2023 -4.5%; IoT 2025 of NT$191.0 billion 2.6% below 2022's NT$196.1 billion; consumer electronics 2025 23.9% below 2017 while company revenue grew 3.9 times, and 1/46 of HPC in 2025 against 24% in 2017; consumer electronics and others NT$127.6 billion (3.3%); 2Q26 HPC revenue about 66% x NT$1,270.38 billion against 60% x NT$933.79 billion, about half as much again, on rounded platform shares — 2017 to 2Q26 · publ. 2026-09-23 · source ↗
  11. ReportedWith a single reporting segment, TSMC leaves the line's earnings to inference.
    TSMC Form 20-F FY2025 - net revenue by platform 2023-2025 (NT$ millions): HPC 934,769 / 1,476,891 / 2,192,931; smartphone 814,914 / 1,005,130 / 1,110,816; IoT 161,917 / 165,516 / 191,047; automotive 133,654 / 139,323 / 186,667; digital consumer electronics 47,000 / 47,961 / 47,997; others 69,482 / 59,487 / 79,596; total 2,161,736 / 2,894,308 / 3,809,054; increases from HPC of NT$716,040 million (48%) and NT$542,122 million (58%) and from smartphone of NT$105,686 million (11%) and NT$190,216 million (23%); platform descriptions; only one operating segment, the foundry segment; gross margin 54.4%, 56.1% and 59.9%; 7-nanometer and below 74% of wafer revenue in 2025, up from 69%; ESMC in Dresden (Fab 24) and up to EUR5 billion of German state aid agreed December 2024 — FY2023-FY2025 · publ. April 2026 · source ↗
  12. ReportedThe second cuts against that: in July management said that outside specific areas such as power management and CMOS image sensors, mature-node demand in commodity areas was not that strong, and that TSMC would focus on higher value-added segments.
    TSMC 2Q26 earnings call transcript - third-quarter gross margin guided down 1.7 points to 66% at the midpoint as the 2-nanometre ramp dilutes by about 3 to 4 points; full-year 2026 revenue growth slightly above 40% in US dollars; 2026 capital budget raised to US$60-64 billion; agentic AI bringing back the CPU in AI data centres, with x86, Arm and RISC-V designers almost all TSMC customers; mature-node capacity increased at JASM in Japan for CMOS image sensors and ESMC in Germany for automotive and industrial, with commodity mature-node demand outside power management and image sensors not strong — 2Q26 call · publ. July 16, 2026 · source ↗
  13. ReportedFrom 2017 to 2025 the line compounded at 17.7% a year, to 3.7 times its starting revenue.
    TSMC Form 20-F FY2019 - net revenue by platform 2017-2019 on the platform basis adopted in 2019 (NT$ millions): smartphone 504,175 / 466,452 / 523,613; HPC 265,394 / 341,910 / 315,822; IoT 51,776 / 65,092 / 86,343; automotive 43,871 / 51,710 / 47,914; digital consumer electronics 63,097 / 58,470 / 53,733; others 49,134 / 47,840 / 42,560; total 977,447 / 1,031,474 / 1,069,985; 2019 increases from smartphone NT$57,161 million (12%) and IoT NT$21,251 million (33%), offset by HPC down NT$26,088 million (8%); 2018 increases from HPC NT$76,516 million (29%) and IoT NT$13,316 million (26%), offset by smartphone down NT$37,723 million (7%) — FY2017-FY2019 · publ. April 2020 · source ↗
  14. ReportedFrom 2017 to 2025 the line compounded at 17.7% a year, to 3.7 times its starting revenue.
    TSMC Form 20-F FY2025 - net revenue by platform 2023-2025 (NT$ millions): HPC 934,769 / 1,476,891 / 2,192,931; smartphone 814,914 / 1,005,130 / 1,110,816; IoT 161,917 / 165,516 / 191,047; automotive 133,654 / 139,323 / 186,667; digital consumer electronics 47,000 / 47,961 / 47,997; others 69,482 / 59,487 / 79,596; total 2,161,736 / 2,894,308 / 3,809,054; increases from HPC of NT$716,040 million (48%) and NT$542,122 million (58%) and from smartphone of NT$105,686 million (11%) and NT$190,216 million (23%); platform descriptions; only one operating segment, the foundry segment; gross margin 54.4%, 56.1% and 59.9%; 7-nanometer and below 74% of wafer revenue in 2025, up from 69%; ESMC in Dresden (Fab 24) and up to EUR5 billion of German state aid agreed December 2024 — FY2023-FY2025 · publ. April 2026 · source ↗
  15. Moat Explorer calcFrom 2017 to 2025 the line compounded at 17.7% a year, to 3.7 times its starting revenue.
    Moat Explorer calculation from TSMC's Forms 20-F FY2019, FY2022 and FY2025 and quarterly management reports: platform shares of revenue (HPC 2,192,931/3,809,054 = 57.6% in 2025 and 265,394/977,447 = 27.2% in 2017; smartphone 29.2% in 2025 and 51.6% in 2017; IoT 5.0% and 5.3%; automotive 4.9% and 4.5%; consumer electronics 1.3% and 6.5%; the four non-HPC lines 72.8% in 2017 and 34% in 2Q26); 2025 revenue increase NT$914,746 million, of which HPC 78.3%, and 2024 NT$732,572 million, of which 74.0%; 2017-2025 compound annual growth HPC 30.2%, automotive 19.8%, IoT 17.7%, smartphone 10.4%, consumer electronics -3.4%; year-on-year changes HPC +28.8%, -7.6%, +39.3%, +33.6%, +58.6%, +0.3%, +58.0%, +48.5% (2018-2025), smartphone 2023 -8.3% and 2020 +23.2%, IoT 2023 -17.4% and 2024 +2.2%, automotive 2022 +73.5%, 2023 +14.8%, 2024 +4.2%, 2025 +34.0%, company revenue 2023 -4.5%; IoT 2025 of NT$191.0 billion 2.6% below 2022's NT$196.1 billion; consumer electronics 2025 23.9% below 2017 while company revenue grew 3.9 times, and 1/46 of HPC in 2025 against 24% in 2017; consumer electronics and others NT$127.6 billion (3.3%); 2Q26 HPC revenue about 66% x NT$1,270.38 billion against 60% x NT$933.79 billion, about half as much again, on rounded platform shares — 2017 to 2Q26 · publ. 2026-09-23 · source ↗
  16. ReportedIt grew 26% in 2018 and 33% in 2019, when TSMC named it as one of the two sources of that year's increase, and 47% in 2022, to NT$196.1 billion, 8.7% of revenue.
    TSMC Form 20-F FY2019 - net revenue by platform 2017-2019 on the platform basis adopted in 2019 (NT$ millions): smartphone 504,175 / 466,452 / 523,613; HPC 265,394 / 341,910 / 315,822; IoT 51,776 / 65,092 / 86,343; automotive 43,871 / 51,710 / 47,914; digital consumer electronics 63,097 / 58,470 / 53,733; others 49,134 / 47,840 / 42,560; total 977,447 / 1,031,474 / 1,069,985; 2019 increases from smartphone NT$57,161 million (12%) and IoT NT$21,251 million (33%), offset by HPC down NT$26,088 million (8%); 2018 increases from HPC NT$76,516 million (29%) and IoT NT$13,316 million (26%), offset by smartphone down NT$37,723 million (7%) — FY2017-FY2019 · publ. April 2020 · source ↗
  17. ReportedIt grew 26% in 2018 and 33% in 2019, when TSMC named it as one of the two sources of that year's increase, and 47% in 2022, to NT$196.1 billion, 8.7% of revenue.
    TSMC Form 20-F FY2022 - net revenue by platform 2020-2022 (NT$ millions): HPC 439,810 / 587,780 / 932,384; smartphone 645,304 / 695,091 / 888,879; IoT 110,355 / 133,006 / 196,115; automotive 44,367 / 67,077 / 116,381; digital consumer electronics 54,556 / 55,577 / 56,159; others 44,863 / 48,884 / 73,973; total 1,339,255 / 1,587,415 / 2,263,891; 2022 increases from HPC NT$344,604 million (59%), smartphone NT$193,788 million (28%) and IoT NT$63,109 million (47%); 2021 increases from HPC NT$147,970 million (34%), smartphone NT$49,787 million (8%) and automotive NT$22,710 million (51%) — FY2020-FY2022 · publ. April 2023 · source ↗
  18. Moat Explorer calcIt grew 26% in 2018 and 33% in 2019, when TSMC named it as one of the two sources of that year's increase, and 47% in 2022, to NT$196.1 billion, 8.7% of revenue.
    Moat Explorer calculation from TSMC's Forms 20-F FY2019, FY2022 and FY2025 and quarterly management reports: platform shares of revenue (HPC 2,192,931/3,809,054 = 57.6% in 2025 and 265,394/977,447 = 27.2% in 2017; smartphone 29.2% in 2025 and 51.6% in 2017; IoT 5.0% and 5.3%; automotive 4.9% and 4.5%; consumer electronics 1.3% and 6.5%; the four non-HPC lines 72.8% in 2017 and 34% in 2Q26); 2025 revenue increase NT$914,746 million, of which HPC 78.3%, and 2024 NT$732,572 million, of which 74.0%; 2017-2025 compound annual growth HPC 30.2%, automotive 19.8%, IoT 17.7%, smartphone 10.4%, consumer electronics -3.4%; year-on-year changes HPC +28.8%, -7.6%, +39.3%, +33.6%, +58.6%, +0.3%, +58.0%, +48.5% (2018-2025), smartphone 2023 -8.3% and 2020 +23.2%, IoT 2023 -17.4% and 2024 +2.2%, automotive 2022 +73.5%, 2023 +14.8%, 2024 +4.2%, 2025 +34.0%, company revenue 2023 -4.5%; IoT 2025 of NT$191.0 billion 2.6% below 2022's NT$196.1 billion; consumer electronics 2025 23.9% below 2017 while company revenue grew 3.9 times, and 1/46 of HPC in 2025 against 24% in 2017; consumer electronics and others NT$127.6 billion (3.3%); 2Q26 HPC revenue about 66% x NT$1,270.38 billion against 60% x NT$933.79 billion, about half as much again, on rounded platform shares — 2017 to 2Q26 · publ. 2026-09-23 · source ↗
  19. ReportedThen it fell 17.4% in 2023, to NT$161.9 billion, in the downturn TSMC blamed on soft end demand and customers' inventory adjustment.
    TSMC Form 20-F FY2025 - net revenue by platform 2023-2025 (NT$ millions): HPC 934,769 / 1,476,891 / 2,192,931; smartphone 814,914 / 1,005,130 / 1,110,816; IoT 161,917 / 165,516 / 191,047; automotive 133,654 / 139,323 / 186,667; digital consumer electronics 47,000 / 47,961 / 47,997; others 69,482 / 59,487 / 79,596; total 2,161,736 / 2,894,308 / 3,809,054; increases from HPC of NT$716,040 million (48%) and NT$542,122 million (58%) and from smartphone of NT$105,686 million (11%) and NT$190,216 million (23%); platform descriptions; only one operating segment, the foundry segment; gross margin 54.4%, 56.1% and 59.9%; 7-nanometer and below 74% of wafer revenue in 2025, up from 69%; ESMC in Dresden (Fab 24) and up to EUR5 billion of German state aid agreed December 2024 — FY2023-FY2025 · publ. April 2026 · source ↗
  20. ReportedThen it fell 17.4% in 2023, to NT$161.9 billion, in the downturn TSMC blamed on soft end demand and customers' inventory adjustment.
    TSMC 1Q23 Quarterly Management Report - revenue decreased 18.7% quarter over quarter on weakening macroeconomic conditions, end-market demand softness and customers' inventory adjustment; revenue from HPC, smartphone, IoT, DCE and others decreased 14%, 27%, 19%, 5% and 18% while automotive increased 5% — 1Q23 · publ. April 20, 2023 · source ↗
  21. Moat Explorer calcThen it fell 17.4% in 2023, to NT$161.9 billion, in the downturn TSMC blamed on soft end demand and customers' inventory adjustment.
    Moat Explorer calculation from TSMC's Forms 20-F FY2019, FY2022 and FY2025 and quarterly management reports: platform shares of revenue (HPC 2,192,931/3,809,054 = 57.6% in 2025 and 265,394/977,447 = 27.2% in 2017; smartphone 29.2% in 2025 and 51.6% in 2017; IoT 5.0% and 5.3%; automotive 4.9% and 4.5%; consumer electronics 1.3% and 6.5%; the four non-HPC lines 72.8% in 2017 and 34% in 2Q26); 2025 revenue increase NT$914,746 million, of which HPC 78.3%, and 2024 NT$732,572 million, of which 74.0%; 2017-2025 compound annual growth HPC 30.2%, automotive 19.8%, IoT 17.7%, smartphone 10.4%, consumer electronics -3.4%; year-on-year changes HPC +28.8%, -7.6%, +39.3%, +33.6%, +58.6%, +0.3%, +58.0%, +48.5% (2018-2025), smartphone 2023 -8.3% and 2020 +23.2%, IoT 2023 -17.4% and 2024 +2.2%, automotive 2022 +73.5%, 2023 +14.8%, 2024 +4.2%, 2025 +34.0%, company revenue 2023 -4.5%; IoT 2025 of NT$191.0 billion 2.6% below 2022's NT$196.1 billion; consumer electronics 2025 23.9% below 2017 while company revenue grew 3.9 times, and 1/46 of HPC in 2025 against 24% in 2017; consumer electronics and others NT$127.6 billion (3.3%); 2Q26 HPC revenue about 66% x NT$1,270.38 billion against 60% x NT$933.79 billion, about half as much again, on rounded platform shares — 2017 to 2Q26 · publ. 2026-09-23 · source ↗
  22. ReportedRevenue from the line fell 19% on the quarter in the March 2023 quarter alone.
    TSMC 1Q23 Quarterly Management Report - revenue decreased 18.7% quarter over quarter on weakening macroeconomic conditions, end-market demand softness and customers' inventory adjustment; revenue from HPC, smartphone, IoT, DCE and others decreased 14%, 27%, 19%, 5% and 18% while automotive increased 5% — 1Q23 · publ. April 20, 2023 · source ↗
  23. ReportedIt barely moved in 2024, up 2.2%, and rose 15% in 2025.
    TSMC Form 20-F FY2025 - net revenue by platform 2023-2025 (NT$ millions): HPC 934,769 / 1,476,891 / 2,192,931; smartphone 814,914 / 1,005,130 / 1,110,816; IoT 161,917 / 165,516 / 191,047; automotive 133,654 / 139,323 / 186,667; digital consumer electronics 47,000 / 47,961 / 47,997; others 69,482 / 59,487 / 79,596; total 2,161,736 / 2,894,308 / 3,809,054; increases from HPC of NT$716,040 million (48%) and NT$542,122 million (58%) and from smartphone of NT$105,686 million (11%) and NT$190,216 million (23%); platform descriptions; only one operating segment, the foundry segment; gross margin 54.4%, 56.1% and 59.9%; 7-nanometer and below 74% of wafer revenue in 2025, up from 69%; ESMC in Dresden (Fab 24) and up to EUR5 billion of German state aid agreed December 2024 — FY2023-FY2025 · publ. April 2026 · source ↗
  24. ReportedIt barely moved in 2024, up 2.2%, and rose 15% in 2025.
    TSMC 4Q25 earnings call transcript - in 4Q25 DCE decreased 22%; for 2025 HPC increased 48% and smartphone, IoT and automotive 11%, 15% and 34%, while DCE remained flat; revenue from AI accelerators accounted for high-teens percent of total revenue in 2025, with AI accelerator revenue growth forecast to approach a mid-to-high-fifties per cent CAGR for 2024-2029; N2 entered high-volume manufacturing in 4Q25 with strong demand from smartphone and HPC/AI; TSMC supplies most high-end smartphones, which are less sensitive to memory prices — 4Q25 call · publ. January 15, 2026 · source ↗
  25. Moat Explorer calcIt barely moved in 2024, up 2.2%, and rose 15% in 2025.
    Moat Explorer calculation from TSMC's Forms 20-F FY2019, FY2022 and FY2025 and quarterly management reports: platform shares of revenue (HPC 2,192,931/3,809,054 = 57.6% in 2025 and 265,394/977,447 = 27.2% in 2017; smartphone 29.2% in 2025 and 51.6% in 2017; IoT 5.0% and 5.3%; automotive 4.9% and 4.5%; consumer electronics 1.3% and 6.5%; the four non-HPC lines 72.8% in 2017 and 34% in 2Q26); 2025 revenue increase NT$914,746 million, of which HPC 78.3%, and 2024 NT$732,572 million, of which 74.0%; 2017-2025 compound annual growth HPC 30.2%, automotive 19.8%, IoT 17.7%, smartphone 10.4%, consumer electronics -3.4%; year-on-year changes HPC +28.8%, -7.6%, +39.3%, +33.6%, +58.6%, +0.3%, +58.0%, +48.5% (2018-2025), smartphone 2023 -8.3% and 2020 +23.2%, IoT 2023 -17.4% and 2024 +2.2%, automotive 2022 +73.5%, 2023 +14.8%, 2024 +4.2%, 2025 +34.0%, company revenue 2023 -4.5%; IoT 2025 of NT$191.0 billion 2.6% below 2022's NT$196.1 billion; consumer electronics 2025 23.9% below 2017 while company revenue grew 3.9 times, and 1/46 of HPC in 2025 against 24% in 2017; consumer electronics and others NT$127.6 billion (3.3%); 2Q26 HPC revenue about 66% x NT$1,270.38 billion against 60% x NT$933.79 billion, about half as much again, on rounded platform shares — 2017 to 2Q26 · publ. 2026-09-23 · source ↗
  26. ReportedThe quarterly figures show how jumpy the recovery has been: revenue from the line rose 35% on the quarter in September 2024, fell 9% in March 2025, rose 14% in June and 20% in September 2025, and then slowed to 3%, 12% and 4% in the next three quarters.
    TSMC 3Q24 Quarterly Management Report - sequentially, revenue from HPC, smartphone, IoT, automotive and others increased 11%, 16%, 35%, 6% and 8%, while DCE decreased 19% — 3Q24 · publ. October 17, 2024 · source ↗
  27. ReportedThe quarterly figures show how jumpy the recovery has been: revenue from the line rose 35% on the quarter in September 2024, fell 9% in March 2025, rose 14% in June and 20% in September 2025, and then slowed to 3%, 12% and 4% in the next three quarters.
    TSMC 1Q25 Quarterly Management Report - sequentially, revenue from HPC, automotive, DCE and others increased 7%, 14%, 8% and 20%, while smartphone and IoT decreased 22% and 9% — 1Q25 · publ. April 17, 2025 · source ↗
  28. ReportedThe quarterly figures show how jumpy the recovery has been: revenue from the line rose 35% on the quarter in September 2024, fell 9% in March 2025, rose 14% in June and 20% in September 2025, and then slowed to 3%, 12% and 4% in the next three quarters.
    TSMC 2Q25 Quarterly Management Report - sequentially, revenue from HPC, smartphone, IoT, DCE and others increased 14%, 7%, 14%, 30% and 6% — 2Q25 · publ. July 17, 2025 · source ↗
  29. ReportedThe quarterly figures show how jumpy the recovery has been: revenue from the line rose 35% on the quarter in September 2024, fell 9% in March 2025, rose 14% in June and 20% in September 2025, and then slowed to 3%, 12% and 4% in the next three quarters.
    TSMC 3Q25 Quarterly Management Report - sequentially, revenue from smartphone, IoT and automotive increased 19%, 20% and 18% — 3Q25 · publ. October 16, 2025 · source ↗
  30. ReportedThe quarterly figures show how jumpy the recovery has been: revenue from the line rose 35% on the quarter in September 2024, fell 9% in March 2025, rose 14% in June and 20% in September 2025, and then slowed to 3%, 12% and 4% in the next three quarters.
    TSMC 4Q25 Quarterly Management Report - sequentially, revenue from HPC, smartphone, IoT and others increased 4%, 11%, 3% and 14%; full-year 2025 net revenue by platform HPC 58%, smartphone 29%, IoT 5%, automotive 5%, DCE 1%, others 2% — 4Q25 and full year 2025 · publ. January 15, 2026 · source ↗
  31. ReportedThe quarterly figures show how jumpy the recovery has been: revenue from the line rose 35% on the quarter in September 2024, fell 9% in March 2025, rose 14% in June and 20% in September 2025, and then slowed to 3%, 12% and 4% in the next three quarters.
    TSMC 1Q26 Quarterly Management Report - net revenue NT$1,134.10 billion; sequentially, revenue from HPC, IoT, DCE and others increased 20%, 12%, 28% and 17%, while smartphone and automotive decreased 11% and 7%; HPC 61% and smartphone 26% of net revenue — 1Q26 · publ. April 16, 2026 · source ↗
  32. ReportedThe quarterly figures show how jumpy the recovery has been: revenue from the line rose 35% on the quarter in September 2024, fell 9% in March 2025, rose 14% in June and 20% in September 2025, and then slowed to 3%, 12% and 4% in the next three quarters.
    TSMC 2Q26 Quarterly Management Report - net revenue NT$1,270.38 billion against NT$933.79 billion in 2Q25; gross margin 67.7%; HPC 66%, smartphone 22%, IoT 5%, automotive 4%, DCE 1%, others 2% of net revenue (2Q25: HPC 60%, smartphone 27%); sequentially, revenue from HPC, IoT, automotive, DCE and others increased 20%, 4%, 15%, 5% and 5%, while smartphone decreased 4%; North America 78% of net revenue; 7nm and below 77% of wafer revenue — 2Q26 · publ. July 16, 2026 · source ↗
Sources
Generated September 23, 2026