Taiwan Semiconductor Manufacturing Company (TSMC), a global leader in advanced semiconductor manufacturing, is anticipated to disclose a remarkable 42% increase in its third-quarter profits this Thursday, fueled by an unprecedented surge in demand driven by the artificial intelligence (AI) boom. TSMC’s pivotal role in the tech industry includes partnerships with major players like Apple and Nvidia, positioning it at the forefront of the AI revolution that spans various sectors.
For the quarter ending on September 30, analysts forecast TSMC will report a net profit of T$300.1 billion, equivalent to approximately $9.33 billion. This contrasts sharply with the T$211 billion profit recorded in Q3 of the previous year. The company has already announced a significant rise in revenue denominated in Taiwan dollars, surpassing market anticipations last week. Moreover, during its upcoming earnings call, TSMC is expected to provide valuable insights on revenue expectations for the fourth quarter, presented in U.S. dollars.
However, the semiconductor landscape has experienced volatile shifts. Recently, ASML, a critical supplier of chipmaking equipment to enterprises such as TSMC, indicated lower than expected sales and bookings for 2025, attributed to persistent weaknesses in segments of the chip market. This announcement has negatively impacted ASML’s market valuation, reflecting the broader uncertainties in the semiconductor sector. Late on Tuesday, TSMC’s shares dipped by 2.3% to T$1,045, but they remain close to their record high of T$1,080, achieved on July 11.
The forthcoming earnings call is set to commence at 0600 GMT, where TSMC will elaborate on its projections for the remainder of the current quarter and the overall year, including its ambitious capital expenditure plans. The company has committed billions to expand its manufacturing capabilities globally, with $65 billion allocated for constructing three state-of-the-art facilities in Arizona, U.S., while maintaining the majority of its production base in Taiwan.
Traditionally, the latter half of the year marks the peak season for Taiwan’s tech firms as they strive to meet demand ahead of the holiday season in significant Western markets. The AI surge has significantly influenced TSMC’s stock performance, which has soared by 76% this year, in contrast to the broader market’s 28% gain.
Often referred to in Taiwan as the “sacred mountain protecting the country,” TSMC holds a critical position within the nation’s export-driven economy and operates with limited competition. However, giants like Intel and Samsung are increasingly making efforts to bridge the gap and challenge TSMC’s prominent market share.
As the third quarter concludes, tech enthusiasts and investors alike eagerly await TSMC’s detailed earnings report, which promises to shine a light on the future of the semiconductor industry amidst the AI wave sweeping across various domains. With robust performance forecasts and expansion strategies, TSMC is not just a key player but a cornerstone of technological advancement in the 21st century.