Taiwan Semiconductor Manufacturing Co. reported a record-breaking quarter and projected continued growth, citing “extremely robust” demand for artificial intelligence chips. The world’s largest contract chipmaker expects AI-related revenue to more than triple in 2024 compared to the previous year.
TSMC’s net profit surged 54.2% year-on-year to NT$325.26 billion ($10.06 billion) in the third quarter, driven by strong demand for Nvidia’s AI chips and Apple’s latest iPhone processors. Revenue jumped 39% to NT$759.69 billion, exceeding guidance.
CEO C.C. Wei stated that AI demand is “just the beginning” and will persist for years. The company forecasts full-year revenue growth of nearly 30% in dollar terms, up from its previous estimate of 26%.
TSMC plans to increase capital spending beyond this year’s $30 billion budget, indicating ongoing capacity expansion. The chipmaker’s first Arizona plant will begin mass production in early 2025, with additional facilities in Japan and Germany slated for production by late 2027.
Despite a slower recovery in consumer electronics affecting some chip segments, TSMC’s robust outlook contrasts with more cautious projections from suppliers like ASML. The company’s performance underscores its critical role in the AI chip supply chain and its growing importance to major tech firms like Nvidia and potentially Intel.
