TSMC Profits Soar as AI Boom Drives Record Growth
TSMC, the world’s largest producer of advanced AI chips, reported stronger-than-expected earnings as the AI boom continues to accelerate. The company projected its fourth-quarter revenue to rise by as much as 24%, marking its sixth straight quarter of double-digit profit growth.
The Taiwan Semiconductor Manufacturing Co. said demand for artificial intelligence processors remains robust and confirmed its capital spending forecast of up to $42 billion for 2025. However, it warned that U.S. trade tariffs and currency fluctuations could impact its business in the coming year.
AI Demand Lifts TSMC Profits Above Forecasts
TSMC, a key supplier to Nvidia and Apple, posted a 39.1% jump in third-quarter net profit, reaching T$452.3 billion ($14.76 billion). This result exceeded the T$417.7 billion LSEG SmartEstimate from 20 analysts, reflecting stronger performance than expected.
The chipmaker said AI-related demand is even higher than anticipated three months ago. It expects the AI megatrend to continue driving growth into 2026, supported by soaring demand for high-performance chips used in data centers and generative AI applications.
Trade Tensions and Global Expansion
While TSMC remains optimistic, it acknowledged uncertainty from U.S. trade policies under President Donald Trump, who has proposed new tariffs on semiconductors. Despite this, TSMC is expanding its U.S. footprint, confirming a $100 billion investment plan announced alongside Trump at the White House in March, in addition to $65 billion already committed to three Arizona plants, one of which is operational.
Elsewhere in the semiconductor sector, ASML, one of TSMC’s top equipment suppliers, reported higher-than-expected third-quarter orders but warned of weaker China demand next year. Similarly, Samsung Electronics projected its largest quarterly profit in over three years, also driven by the global AI surge.
TSMC’s Taiwan-listed shares have risen 38% year-to-date, outperforming the broader market’s 20% gain, as investors continue to bet on AI chip growth despite tariff concerns.
