Taiwan Semiconductor Manufacturing Co (TSMC), the world's largest contract chipmaker, reported a forecast-beating 54% jump in Q3 profit, driven by booming demand for AI-related chips. The company expects sustained strong growth, forecasting fourth-quarter revenue of US$26.1 billion to US$26.9 billion, up from US$19.62 billion a year earlier.
In Q3, TSMC's net profit hit a record T$325.3 billion (RM43.39 billion), surpassing analyst predictions of T$300.2 billion. Revenue for the quarter rose 36% year-on-year to US$23.5 billion, above the company's previous estimates.
TSMC, a key supplier for Apple and Nvidia, has been significantly investing in production capacity, forecasting capital expenditure for 2024 at over US$30 billion. The company is building three factories in Arizona, with the first expected to start production in 2025 and the second by 2028.
Despite challenges from rivals Intel and Samsung, TSMC remains a dominant player, and its shares have surged 75% this year, giving it a market value of US$840 billion.
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