Taiwan Semiconductor Manufacturing (TSMC) significantly exceeded estimates in the third quarter. Its net profit rose 39.1 percent year-on-year to TWD 452.3 billion, while analysts had expected TWD 417.7 billion. The company said the main driver of growth is the surge in demand for artificial intelligence chips, which it calls a megatrend.
TSMC’s revenue and investment growth
TSMC’s revenue rose 30.3 percent year-on-year to TWD 989.9 billion, and management expects it to grow by up to 24 percent in the fourth quarter. Capital expenditures for the full year are expected to reach USD 42 billion, reflecting the strong pace of expansion. However, the company warns that US tariffs and exchange rate fluctuations could affect its performance.
TSMC supplies its chips to leading technology giants, including Nvidia and Apple. According to management, interest in AI technology is even higher than expected, so the company remains cautious in its production planning for next year.
Trump’s policy is changing the environment
President Donald Trump’s trade policy is increasing pressure to move chip production to the US. TSMC is responding with extensive investments—it will build five new plants for a total of $100 billion. These will complement the previously announced $65 billion project for three factories in Arizona, one of which is already in operation.
Growth in the semiconductor sector is also confirmed by other companies. Dutch company ASML exceeded order expectations but warns of a decline in Chinese demand next year. Samsung Electronics expects its highest quarterly profit in three years thanks to strong interest in AI. TSMC shares have risen 38 percent since the beginning of the year, while the broader Taiwanese market has added about 20 percent.
Source: Czech Press Agency
