Moody's Ratings revised its outlook on Taiwan Semiconductor Manufacturing Company (TSMC) to positive from stable. The agency affirmed TSMC's Aa3 issuer rating.
TSMC's dominant market position and technological leadership underpin the revision. Moody's anticipates annual revenue growth of 30% to 40% over the next 12 to 18 months. Surging demand for artificial intelligence and cloud computing drives these projections.
The agency forecasts TSMC's adjusted EBITDA margin will reach approximately 75% within 18 months. This represents an increase from the 72% margin projected for 2025.
TSMC expects to maintain a strong net cash position and stable leverage during this expansion. The company is currently diversifying production to the U.S., Japan, and Germany.