TSMC profit surges again after AI drives big jump in sales
The world's biggest contract chipmaker on Thursday said net income for the period was NT$398.3 billion ($13.5 billion), extending a streak of beating analysts' estimates that dates back to 2021. The company previously posted a 39% surge in revenue.
TSMC's performance underscores resilient demand for high-end artificial intelligence chips from the likes of Nvidia Corp. and Advanced Micro Devices Inc., which is outpacing its production capacity.
Chief Executive Officer C.C. Wei affirmed in a shareholder meeting in June that AI orders continue to run hot and TSMC anticipates 2025 sales will grow in the mid-20% range in US dollar terms. The company's revenue has grown roughly 40% over the first half of the year, even with a stronger Taiwanese dollar suppressing that figure. It's pledged to spend another $100 billion ramping up manufacturing in Arizona, in addition to an expansion in Japan, Germany and back home.
A day before TSMC's results, key chipmaking gear supplier ASML Holding NV triggered anxiety across markets by walking back its growth forecast for 2026. Geopolitics and the global economy are sources of 'increasing uncertainty,' Chief Executive Officer Christophe Fouquet said. Its shares dropped more than 11%. –BLOOMBERG
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