Taiwan Semiconductor Manufacturing Co. (TSMC), the world’s largest contract chipmaker, is expected to report a significant 40% increase in its third-quarter profit, driven by strong demand for AI chips. TSMC, a key supplier to tech giants such as Apple, Nvidia, and AMD, is forecasted to achieve a net profit of T$298.2 billion ($9.27 billion) for the quarter ending September 30, according to estimates from LSEG. This marks a substantial increase from the T$211 billion reported during the same period last year.
The surge in profit is attributed to TSMC's advanced chip technologies that are crucial for AI applications, with major clients launching new products heavily reliant on its manufacturing capabilities. The company has already reported a jump in Q3 revenue, surpassing market expectations, further emphasizing its dominance in the semiconductor space.
In addition to its financial growth, TSMC is aggressively expanding its production capacity globally. The company is investing $65 billion in new facilities in Arizona, U.S., while reaffirming that the majority of its manufacturing will remain in Taiwan. At its earnings call scheduled for Thursday, TSMC will update its revenue outlook for the year, alongside revised capital expenditure plans which are expected to range between $30 billion and $32 billion.
The AI boom has significantly boosted TSMC’s stock, with its Taipei-listed shares soaring 77% this year, far outpacing the 28% rise in the broader market. As a critical player in Taiwan’s economy, TSMC’s continued dominance leaves it with little competition, with even longtime industry leader Intel struggling to challenge its market position.
The company’s ability to maintain leadership in the semiconductor industry, supported by strong AI-driven demand and ambitious expansion plans, positions it for continued growth as the world’s reliance on advanced chip technologies accelerates.
The surge in profit is attributed to TSMC's advanced chip technologies that are crucial for AI applications, with major clients launching new products heavily reliant on its manufacturing capabilities. The company has already reported a jump in Q3 revenue, surpassing market expectations, further emphasizing its dominance in the semiconductor space.
In addition to its financial growth, TSMC is aggressively expanding its production capacity globally. The company is investing $65 billion in new facilities in Arizona, U.S., while reaffirming that the majority of its manufacturing will remain in Taiwan. At its earnings call scheduled for Thursday, TSMC will update its revenue outlook for the year, alongside revised capital expenditure plans which are expected to range between $30 billion and $32 billion.
The AI boom has significantly boosted TSMC’s stock, with its Taipei-listed shares soaring 77% this year, far outpacing the 28% rise in the broader market. As a critical player in Taiwan’s economy, TSMC’s continued dominance leaves it with little competition, with even longtime industry leader Intel struggling to challenge its market position.
The company’s ability to maintain leadership in the semiconductor industry, supported by strong AI-driven demand and ambitious expansion plans, positions it for continued growth as the world’s reliance on advanced chip technologies accelerates.