TSMC’s profit surges all-time high of 39%, fueled by AI boom

Taiwan Semiconductor Manufacturing Company (TSMC) has reported its highest third quarterly profit surging to 39.1 percent driven by the AI boom.

The Taiwanese chipmaker on Thursday witnessed NT$452.3 billion in net earnings for its third quarter, showing a massive jump in sales on a yearly basis. The revenues also rose to 6 percent in the previous quarter to NT$989.9 billion.

The historic boost in profits came from the artificial intelligence boom in which the world’s largest chipmaker produced cutting-edge AI processors for various tech firms including Apple, Broadcom and Nvidia.

According to TSMC officials, the firm is projected to maintain its forecast for capital spending at up to $42 billion for 2025 on the back of increased demand for AI infrastructure and chips.

Net profit for July-September rose to T$452.3 billion or $14.76 billion, consisting of artificial intelligence and 5G applications which account for 57 percent of revenue.

Moreover, TSMC’s advanced chips accounted for 74 percent of total revenue in the quarter.

According to CEO CC Wei, “AI demand continues to be very strong, stronger than we thought three months ago.”

Trade tariff threats could likely impact business activities as concerns raised by the chip producer.

The Taiwanese chipmaker has announced plans to invest $100 billion in the US. In addition to this, $65 billion have been reserved for three plants in Arizona for the mass production of advanced chips.