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TSMC Projects Record Profit Driven by AI Spending Boom

  • tech360.tv
  • 2 days ago
  • 2 min read

TSMC, the world's largest manufacturer of advanced artificial intelligence chips, is set to post a 28% jump in third-quarter profit, reaching a record high. This surge is primarily due to increasing demand for AI infrastructure, despite potential complications from US tariffs.


Red "tsmc" sign in front of a modern building with a large circular window. Glass facade, blue accents, sunny day, corporate setting.
Credit: TSMC

Taiwan Semiconductor Manufacturing Co. (TSMC), a key supplier to Nvidia and Apple, is forecast to post a net profit of USD 13.65 billion for the three months through Sept. 30. This figure comes from an LSEG SmartEstimate, compiled from 20 analysts.


The company has already signalled a market-forecast-beating 30% rise in third-quarter revenue. Any profit exceeding T$398.3 billion would mark TSMC's highest-ever and its seventh consecutive quarter of profit growth.


Modern building entrance with a large glass canopy, trees on the sides, and a prominent red "tsmc" logo on the ground. Clear sky above.
Credit: TSMC

TSMC, Asia's most valuable listed company with a market capitalisation of about USD 1.2 trillion, will report financial results on Thursday. It will also offer fourth-quarter guidance in an earnings call scheduled for 6 a.m. GMT.


Shares in TSMC have gained 36% so far this year, fuelled by optimism over AI and largely brushing aside tariff concerns. This significant rise has boosted the benchmark Taiwanese index's 18% advance during the same period.


The extent of the impact of US President Donald Trump's tariffs on TSMC remains unclear. Taiwan's exports to the United States are currently subject to a 20% tariff, but this specific levy excludes chips.


Last month, US Secretary of Commerce Howard Lutnick proposed that Taiwanese companies divide their chip production equally between Taiwan and the US. Presently, the vast majority of this production occurs on the island.


Taiwan has rejected this proposition. However, TSMC is already investing USD 165 billion in building factories in Arizona, United States.


Elsewhere in the industry, top semiconductor equipment maker ASML reported third-quarter bookings that surpassed market forecasts. TSMC is a major customer of ASML.


ASML, however, anticipates a significant fall in demand from China next year. Separately, Samsung announced on Tuesday that it expects its largest quarterly profit in over three years, also attributing this to the AI boom.

  • TSMC anticipates a record high third-quarter profit of USD 13.65 billion, representing a 28% rise.

  • The projected profit increase is driven by strong demand for AI infrastructure.

  • TSMC shares have climbed 36% this year, contributing to an 18% advance in the benchmark Taiwanese index.


Source: REUTERS

 
 
 

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