How Taiwan Semiconductor Manufacturing makes money

Period

FY2025

How does Taiwan Semiconductor Manufacturing make money? This Sankey traces every dollar of revenue through the income statement — into cost of revenue, R&D, SG&A, and taxes — and shows what's left as profit. Pick any fiscal year, recent quarter, or the trailing twelve months. Straight from SEC filings.

Taiwan Semiconductor Manufacturing Co. (ADR) · FY2025 · year ended 2025-12-31

Revenue$121.4BGross profit$72.7B · 60%Cost of revenue$48.7B · 40%Operating income$61.7B · 51%Operating expenses$11.0B · 9%R&D$7.9B · 6%Other opex$3.1B · 3%Pre-tax income$65.1B · 54%Other income$3.4B · 3%Net income$54.0B · 45%Income tax$11.0B · 9%

Each fiscal year from SEC filings. Percentages are share of revenue, so the green profit nodes read directly as gross / operating / net margin. Line items a company doesn't break out are derived from their siblings so the flows balance; small residuals show as “Other.” For informational purposes only.