Taiwan Semiconductor Manufacturing Co Ltd (TSMC) revealed a remarkable 54% surge in net profit for the third quarter on Thursday, surpassing market expectations. This growth comes as TSMC continues to benefit from the escalating demand for semiconductors utilized in artificial intelligence applications.
The world’s largest contract chipmaker and a key supplier to tech giants like Apple and Nvidia saw its net profit for July-September climb to NT$325.3 billion from NT$211 billion in the previous year. This figure exceeded the NT$300.2 billion in LSEG SmartEstimate, which gives weight to forecasts from analysts known for their consistent accuracy.
TSMC reported a net revenue of $23.5 billion in the third quarter, marking a 36% increase from the previous year. The company’s gross margin also experienced growth, reaching 57.8% over the period from July to September, compared to 54.3% in the corresponding period of the prior year.
According to TSMC, the strong performance in the third quarter was underpinned by robust demand for smartphones and AI-related applications leveraging the company’s cutting-edge 3nm and 5nm technologies.
The company’s shares listed in Taipei have surged by nearly 75% year-to-date, reflecting the positive trajectory of its financial results and market position.
