Taiwan Semiconductor Manufacturing Company (TSMC) is set to announce a remarkable 40% increase in its third-quarter profits, driven by a surge in demand for advanced chips utilized in artificial intelligence applications. The world’s largest contract chipmaker, which counts tech giants such as Apple and Nvidia among its clients, is expected to report a net profit of T$298.2 billion ($9.27 billion) for the quarter ending September 30, according to LSEG SmartEstimate data gathered from 22 analysts. This figure marks a significant rise from the previous year’s profit of T$211 billion.
Last week, TSMC reported substantial growth in its quarterly revenue, exceeding market expectations. The company is set to provide its revenue outlook in U.S. dollars during its earnings conference, scheduled for 0600 GMT on Thursday.
Li Fang-kuo, chairman of President Capital Management, noted that many of TSMC’s major clients—including Apple, Nvidia, AMD, Qualcomm, and Mediatek—are launching new products that heavily depend on TSMC’s advanced process technologies. “TSMC’s Q3 earnings will exceed expectations significantly,” he added.
During the upcoming earnings call, TSMC will also update its forecasts for the current quarter and the entire fiscal year, along with details on its capital expenditure as it seeks to expand production capacity. The company is investing billions in building new manufacturing facilities abroad, including a $65 billion commitment to three plants in Arizona, while maintaining that most of its manufacturing operations will remain in Taiwan. In July, TSMC raised its full-year revenue forecast and adjusted its capital expenditure plans for 2023 to between $30 billion and $32 billion, up from a previous range of $28 billion to $32 billion.
The ongoing AI boom has significantly boosted TSMC’s stock value, with shares soaring 77% this year, outperforming the broader market, which has gained 28%. Headquartered in Hsinchu, TSMC plays a critical role in Taiwan’s export-driven economy, earning it the nickname “sacred mountain protecting the country.” The company faces little competition, especially as former semiconductor giant Intel struggles with mounting losses in its contract manufacturing unit aimed at rivaling TSMC.
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