Oct 17, V7N- Taiwan Semiconductor Manufacturing Co (TSMC) has reported a significant 54% increase in quarterly profit, driven by soaring demand for chips used in artificial intelligence (AI) applications. TSMC, the world's largest contract chipmaker and a key supplier to companies like Apple and Nvidia, has capitalized on the surge in AI demand across various industries. In its earnings report, TSMC posted a net profit of T$325.3 billion ($10.11 billion) for the quarter ending September 30, exceeding expectations. Revenue rose 36% year-on-year to $23.5 billion, supported by strong demand for its 3nm and 5nm technologies, particularly from smartphones and AI processors.

Looking ahead, TSMC expects its capital spending for the current quarter to reach $11.5 billion and anticipates higher spending in 2025 to meet growing demand. It projects 2024 revenue growth close to 30% in U.S. dollar terms and estimates that revenue from AI processors will contribute to mid-teen percentages of its overall revenue this year. CEO C.C. Wei emphasized that AI demand is robust and expected to last for years.

TSMC's strong performance comes in contrast to concerns about the broader chip industry, especially after a lower-than-expected 2025 sales outlook from ASML, a major chipmaking equipment supplier. With little competition in advanced chip production, TSMC continues to dominate the market, even as Intel and Samsung attempt to challenge its leadership.

TSMC is also investing heavily in expanding its production capacity, including building new fabs in Arizona, U.S., which are expected to begin volume production in 2025, 2028, and by the end of the decade, respectively. With its shares up 75% this year, TSMC remains a critical player in Taiwan's export-driven economy and a bellwether for the global chip industry.

END/TEC/RH/