Taiwan Semiconductor Manufacturing Co (TSMC) , the world’s largest contract chipmaker, reported a 54% jump in quarterly profit , surpassing forecasts, thanks to soaring demand for AI-related chips . This robust performance underscores TSMC’s dominance in producing advanced chips for AI applications, with key customers like Apple and Nvidia . TSMC's net profit for 3Q2024 reached T$325.3 billion (US$10.11 billion) , exceeding the T$300.2 billion forecasted by analysts. The company's revenue rose 36% year-on-year to US$23.5 billion , driven by strong demand for smartphone and AI chips utilizing its cutting-edge 3nm and 5nm technologies . The AI boom has been a major growth driver, with AI processors expected to account for a mid-teens percentage of TSMC's overall revenue for 2024. TSMC's capital spending for the current quarter is set to more than double to US$11.5 billion , and it expects capital expenditure to increase further in 2025 as demand remains robust. Chai
Saudi Aramco has canceled plans to build a 400,000 barrel-per-day refinery and chemicals project at Ras Al Khair on Saudi Arabia’s Gulf coast and has shelved proposals to move the project to Jubail, according to sources familiar with the decision. This move reflects Aramco’s recalibration of its spending plans, with a greater focus on expanding its presence in Asia, particularly China, where it is pursuing several deals to secure long-term demand for Saudi crude.
The cancellation of the Ras Al Khair project underscores Aramco’s shift in strategy toward chemicals production, particularly as the demand for plastics is expected to outlast that for gasoline and diesel, driven by the energy transition. Aramco is already expanding other chemical facilities in Saudi Arabia and is reviewing the viability of three additional chemical projects in Jubail and Yanbu.
Aramco’s decision is also influenced by uncertainty regarding domestic demand and the scale of Crown Prince Mohammed Bin Salman’s economic overhaul, which includes massive industrial and technological developments. The canceled project was initially announced in November 2022, but uncertainty surrounding its feasibility has led to its discontinuation.
Meanwhile, Aramco is continuing with an expansion project for a refinery in Jubail in partnership with TotalEnergies SE and is actively pursuing investments in Asia, including a 10% stake in Hengli Petrochemical Ltd and other deals with Chinese companies. Aramco’s $3.4 billion deal with Rongsheng Petrochemical Co. last year further highlights its push into Asian markets like China, South Korea, and India, where petrochemical production offers substantial growth opportunities.
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