TSMC boosts chip sales outlook after 54% profit surge in Q3
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The news: Taiwan Semiconductor Manufacturing (TSMC), the world’s largest contract chip maker, reported a record 54% jump in quarterly profit and upgraded its sales forecast for 2024, driven by strong demand for AI-related chips.
The numbers: Net income soared to NT$325 billion ($15.10 billion) in the three months to September, from NT$211 billion in the same period a year earlier, while revenue rose 39% to NT$759.69 billion, surpassing market expectations.
TSMC said it expected sales would increase around 30% in US dollar terms this year, compared to earlier estimates of a rise in the mid-20% range. Capital expenditure would surpass USD30 billion in 2024, it said, with further international expansions planned, including facilities in Arizona and Europe.
Chairman and CEO CC Wei said sales from AI-related servers and processors was expected to triple this year and would account for about 15% of TSMC’s total revenue, The Wall Street Journal reported.
The context: TSMC produces chips for clients like Nvidia, Apple and Qualcomm, who don’t have their own manufacturing facilities.
Over the past year, the Taiwanese company has solidified its lead in advanced chip technology, as competitors like Samsung and Intel have faced challenges in progressing their own so-called foundry chip-making capabilities.
What they said: “One of my key customers said the demand right now is insane. It is just the beginning,” Wei told analysts on the earnings call.
The sources: TSMC release , The Wall Street Journal
