Leading computer chipmaker from Taiwan, TSMC, said its net profit had surged nearly 40 per cent in the last quarter, boosted by a surge in the demand for artificial intelligence (AI).
The company reported on Thursday that its net profit had hit a record 452.3 billion new Taiwan dollars ($15 billion) in the July-September quarter, higher than analysts’ forecasts.
Taiwan Semiconductor Manufacturing Corp. is the world’s biggest semiconductor manufacturer and a major supplier to companies such as Apple and Nvidia.
It has been building chip fabrication plants in the United States and Japan to help hedge against risks from China-US trade tensions.
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“Demand for TSMC’s products is unyielding,” Morningstar analysts wrote in a note this month, adding that “given TSMC’s dominance, we doubt the company would be hindered if it faced tariffs on shipments to US customers. We expect AI demand to stay resilient.”
US Commerce Secretary Howard Lutnick proposed last month that computer chip production be divided 50-50 between Taiwan and the US. However, Taiwan – where the majority of global chip manufacturing is currently based – rejected that idea.
TSMC, which had earlier said its revenue jumped 30 per cent year-on-year in the last quarter, has committed $100 billion in US investments, including building new factories in Arizona, on top of $65 billion that it pledged earlier.
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