TSMC posts record profit on surging AI chip demand

Summarised from 2 outlets · Updated 15 Oct, 08:28 · Archive

Taiwan's TSMC reported record third-quarter profit, driven by global demand for artificial intelligence chips.

Taiwan Semiconductor Manufacturing Co. reported record third-quarter profit on Thursday, beating analyst estimates as demand for AI chips remains strong. The company posted net profit that surged 68.7% year-on-year, marking a sixth consecutive quarter of record profits. Its operating margin reached 58.7%, exceeding the upper end of its guidance range.

High-performance computing accounted for the largest share of revenue at 68%, followed by smartphones at 21%. Three-nanometer chips represented the largest share of revenue at 33%, with five-nanometer and seven-nanometer chips following. Automotive proved the fastest-growing segment, expanding 23% quarter-on-quarter. Free cash flow surged to NT$476.56 billion in the third quarter, from NT$139.38 billion a year ago.

TSMC is expanding its manufacturing footprint in the United States, with plans for total investments of $265 billion in Arizona. The company is also evaluating a potential investment in Texas to further strengthen its U.S. manufacturing presence.

How it is being reported

• TSMC profits surge amid relentless AI demandWorld’s leading contract chipmaker beats estimates in third quarterFinancial Times · 15 Oct, 07:46
• TSMC posts record profit for a sixth straight quarter, beating estimates on AI boomTSMC reported its third-quarter earnings on Thursday.CNBC · 15 Oct, 06:59

In this story: TSMC · Taiwan · Arizona · Texas · United States

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