TSMC Beats Q3 Revenue Forecasts as AI Demand Powers 30% Surge
Taiwan Semiconductor Manufacturing Company (TSMC), the world’s largest contract chipmaker, reported a 30% year-on-year rise in third-quarter revenue on Thursday, surpassing market expectations. The strong performance was driven by booming demand for chips used in artificial intelligence (AI) technologies.
For the July–September period, TSMC posted revenue of T$989.92 billion ($32.47 billion), up from T$759.69 billion a year earlier, according to Reuters calculations. The results comfortably beat an LSEG SmartEstimate of T$973.26 billion, based on forecasts from 22 analysts. The figure also landed near the midpoint of the company’s earlier guidance of $31.8 billion to $33 billion, issued during its July earnings call.
TSMC is expected to release its full Q3 earnings report on October 16, which will include an updated outlook for the fourth quarter and the full year.
The chipmaker, which supplies major tech giants such as Nvidia and Apple, has benefited significantly from the global AI boom. Rising demand for AI-driven data centers and advanced processors has helped offset weaker sales in consumer electronics, such as smartphones and tablets, following the pandemic.
Shares of TSMC, listed in Taipei, have surged 34% year-to-date, outperforming the broader market’s 18.5% gain.
Meanwhile, Foxconn, the world’s largest electronics manufacturer and a key Nvidia server producer, also reported record-breaking third-quarter sales, marking its highest revenue ever.
(Exchange rate: $1 = 30.4880 Taiwan dollars)
