An image of a semiconductor wafer at the Taiwan Semiconductor Manufacturing Museum captures the essence of TSMC’s recent success. On January 11, 2022, TSMC revealed a remarkable 54% surge in net profit for the third quarter, buoyed by the rising demand for AI-driven applications. The company’s net income reached 325.3 billion Taiwanese dollars ($10.1 billion), surpassing estimates by Reuters. This impressive performance lifted TSMC’s U.S.-listed shares by 6.62% in premarket trading.
As the world’s leading producer of advanced chips for clients like Apple and Nvidia, TSMC reported a 36% increase in net revenue to $23.5 billion, with a gross margin of 57.8% for the quarter. Looking ahead, TSMC projects its fourth-quarter revenue to reach between $26.1 billion and $26.9 billion, which would represent a 13% sequential rise or a 35% year-over-year increase.
Strong demand for smartphones and AI technologies, particularly in TSMC’s 3nm and 5nm semiconductor nodes, drove this growth. CEO C.C. Wei emphasized the robust and widespread nature of AI demand, highlighting TSMC’s collaborations with numerous AI innovators and hyperscalers.
Furthermore, TSMC’s Taipei-listed shares have soared 80% this year, significantly outperforming the broader market. The company plans to increase its capital expenditure to just over $30 billion, supporting global manufacturing expansion including a $65 billion investment in Arizona and a new factory in Japan. This comes as Dutch supplier ASML forecasts lower-than-expected net sales, and market analysts question the sustainability of the AI boom, though Foxconn’s CEO remains optimistic about AI’s evolving trajectory.
Original Story https://www.cnbc.com/2024/10/17/tsmc-q3-earnings-profit-beats-expectations-as-ai-boom-drives-54percent-hike-.html
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