Record Profit for TSMC Thanks to AI Boom

Taiwan Semiconductor Manufacturing Co, known as TSMC and a leading manufacturer of high-performance chips used in AI applications, expects a 40% increase in quarterly profit for the third quarter. This is driven by strong demand and is generating positive feedback in the markets. TSMC, the world’s largest contract manufacturer for semiconductors, whose customers include Apple and Nvidia, is benefiting significantly from the shift towards artificial intelligence. A net profit of 298.2 billion Taiwan dollars is forecasted for the quarter ending September 30, thanks to analysis by LSEG SmartEstimate. This estimate indicates a significant increase compared to the same quarter last year, when the net profit was T$211 billion. In addition to this financial success, TSMC reports a significant increase in sales in Taiwan dollars, far exceeding market expectations. The company announces its revenue forecasts in US dollars and adjusted its annual forecast upwards in July. Demand is driven by major customers like Apple, Nvidia, AMD, Qualcomm, and Mediatek, who are launching new products that heavily rely on TSMC's advanced processes. TSMC is investing heavily in expanding its production capacity with multi-billion dollar projects, including in the United States. The company’s stock price has risen by 77% this year, highlighting TSMC’s significance within the Asian markets. At the same time, the company faces diminishing competition from aging competitors such as Intel.