TSMC Set to Report 40% Surge in Q3 Profit amid Soaring AI Demand
TEHRAN (Tasnim) – Taiwan Semiconductor Manufacturing Co (TSMC), the world’s largest contract chipmaker, is expected to announce a 40% jump in third-quarter profit on Thursday, driven by robust demand for advanced chips used in artificial intelligence.
Taiwan Semiconductor Manufacturing Co (2330.TW), the primary supplier of high-tech chips for AI applications, is forecast to report a net profit of T$298.2 billion ($9.27 billion) for the quarter ended September 30, according to a LSEG SmartEstimate based on projections from 22 analysts. The estimate marks a significant increase from TSMC's third-quarter profit of T$211 billion in 2023.
The company, which counts Apple (AAPL.O) and Nvidia (NVDA.O) among its major clients, has seen strong demand fueled by the surge toward AI technologies. Last week, TSMC reported third-quarter revenue in Taiwan dollars that comfortably exceeded market expectations. The chipmaker, however, presents its revenue outlook in US dollars at earnings conferences.
"Most of TSMC's major clients, including Apple, Nvidia, AMD (AMD.O), Qualcomm (QCOM.O), and Mediatek (2454.TW), are launching new products that heavily rely on TSMC's advanced process technologies," said Li Fang-kuo, chairman of President Capital Management. "TSMC's Q3 earnings will exceed expectations by a lot," he added.
The Hsinchu-based company, which plays a vital role in Taiwan's export-driven economy and is colloquially known as the "sacred mountain protecting the country," faces minimal competition in the advanced semiconductor market. TSMC has also experienced a 77% surge in its Taipei-listed stock this year, outperforming the broader market's 28% rise.
TSMC will provide updates on its fourth-quarter outlook and full-year forecasts, including capital expenditure, during its quarterly earnings call at 0600 GMT on Thursday. The company previously revised its capital spending plan for the year to between $30 billion and $32 billion, up from an earlier range of $28 billion to $32 billion, while also raising its full-year revenue forecast.
As it races to expand production capacity, TSMC is investing billions in new factories overseas, including $65 billion on three facilities in Arizona, though it has emphasized that most of its manufacturing will remain in Taiwan.
Meanwhile, Intel (INTC.O), once a dominant force in the semiconductor industry, is struggling amid mounting losses in its contract manufacturing division, which it is building in an effort to challenge TSMC's market position.