TSMC Hits New Heights with Q3 Profit Driven by AI Demand
TSMC Records Impressive Profit Growth in Q3
On Thursday, the Taiwan Semiconductor Manufacturing Company (TSMC) revealed a striking 54% increase in Q3 profit, attributed to skyrocketing demand for chips used in artificial intelligence (AI) applications. As the world's largest contract chip maker, TSMC supports major clients including Apple and Nvidia, who are accelerating their AI initiatives.
Financial Highlights
- Net profit: T$325.3 billion (US$10.11 billion)
- Forecasted profit: T$300.2 billion
- Year-on-year revenue growth: 36%, reaching US$23.5 billion
- Capital expenditure: US$6.4 billion in Q3
While TSMC expands its operations overseas, investing US$65 billion on plants in Arizona, it maintains that most production will stay in Taiwan. In contrast, its supplier ASML has projected lower sales due to ongoing weaknesses in some chip market segments.
TSMC's Market Position and Future Prospects
TSMC's shares have surged 75% this year, reflecting the robust demand in the chip market and its critical role in Taiwan's economy. With plans to increase capital expenditures and bullish Q4 forecasts, TSMC continues to strengthen its dominance amidst fierce competition from Intel and Samsung Electronics.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.