TAIPEI, Oct 17 - Taiwan Semiconductor Manufacturing Co (TSMC), the leading producer of advanced chips for artificial intelligence applications, is anticipated to report a 42% increase in third-quarter profit, driven by escalating demand. The company is projected to announce a net profit of T$300.1 billion ($9.33 billion) for the quarter ending September 30, according to an LSEG SmartEstimate based on 23 analysts' forecasts.
TSMC has experienced a surge in revenue, surpassing market expectations, and will provide fourth-quarter revenue guidance in U.S. dollars during its upcoming earnings call. The chipmaker is investing heavily in expanding production capacity, including a $65 billion investment in three new plants in Arizona, USA, while maintaining most manufacturing operations in Taiwan.
Despite TSMC's strong performance, ASML, the world's largest supplier of chipmaking equipment, forecasted lower-than-expected sales and bookings for 2025, leading to a significant drop in its stock. TSMC's shares closed down 2.3% at T$1,045 on Wednesday, though they remain near historic highs.
The company has raised its full-year revenue forecast and adjusted its capital expenditure plans for 2023 to between $30 billion and $32 billion. TSMC's stock has surged 76% this year, reflecting the ongoing AI boom and its crucial role in Taiwan's export-driven economy.