Taiwan Semiconductor Manufacturing Co. (TSMC), the world’s largest producer of advanced AI chips, is set to report a 28% increase in third-quarter profit, reaching a record T$417.7 billion ($13.65 billion), driven by booming demand for AI infrastructure. The projected profit would mark TSMC’s highest-ever quarterly earnings and its seventh consecutive quarter of growth, according to an LSEG SmartEstimate compiled from 20 analysts.
The chipmaker, a key supplier to Nvidia and Apple, has already signaled a 30% rise in third-quarter revenue, surpassing market forecasts. TSMC, Asia’s most valuable listed company with a market capitalization around $1.2 trillion, will release full financial results on Thursday and provide fourth-quarter guidance during a 0600 GMT earnings call.
Top semiconductor equipment maker ASML, a major TSMC customer, reported that third-quarter bookings exceeded expectations but warned of a sharp decline in demand from China next year. Samsung also forecast its largest quarterly profit in over three years, fueled by AI-related demand.
Despite strong earnings, U.S. tariffs could complicate TSMC’s outlook. Taiwan’s exports to the United States face a 20% tariff, though advanced chips are currently excluded. U.S. Commerce Secretary Howard Lutnick recently suggested that Taiwanese companies split chip production equally between Taiwan and the U.S., an idea Taipei has rejected. TSMC is already investing $165 billion to build factories in Arizona.
TSMC shares have risen 36% this year, largely reflecting investor optimism over AI, contributing to an 18% advance in the benchmark Taiwanese index over the same period.
The company’s record profit underscores the growing importance of AI in driving global semiconductor growth, while geopolitical and trade considerations remain key factors for investors and industry watchers alike.
