TSMC Q3 profit blows past market forecast to a record on AI spending boom By Reuters
Key Takeaways
- TSMC's third-quarter profit surged by 39.1% to record levels, significantly beating market expectations.
- The strong performance was fueled by surging global demand for advanced chips used in artificial intelligence applications.
- The company achieved its sixth consecutive quarter of double-digit profit growth.
- Future outlook is complicated by uncertainty surrounding potential U.S. tariffs and trade policies.
- TSMC has substantial ongoing investment plans in the U.S., including $100 billion announced for Arizona facilities.
Taiwan Semiconductor Manufacturing Company (TSMC) posted a record 39.1% increase in third-quarter profit, significantly beating analyst forecasts, driven by robust demand for advanced chips essential for artificial intelligence applications. This impressive result marks the sixth straight quarter of double-digit profit growth for the world's main advanced chip producer. Despite the strong earnings, the company faces potential headwinds from uncertainty regarding U.S. trade policies and threats of tariffs on semiconductors. TSMC has already committed to major U.S. investments, including $100 billion announced earlier this year alongside plans for three plants in Arizona. Nevertheless, investor confidence remains high, as Taiwan-listed TSMC shares have risen 38% year-to-date, largely ignoring tariff concerns. The company's financial success underscores the current AI boom, even as geopolitical trade risks loom over the global chip industry.
