TSMC Reports Surge in Q3 Profit Amid Chip Demand Growth
- TSMC's net profit for Q3 2024 reached NT$325.26 billion (US$10.1 billion), a 54.2% increase from the previous year.
- The company reported a 36% year-on-year revenue growth to US$23.5 billion, driven by strong demand for AI technology.
- Despite geopolitical challenges, TSMC is expanding its production capabilities internationally, indicating a positive outlook for the semiconductor market.
Taiwan's TSMC reported a significant increase in net profit for the third quarter of 2024, reaching NT$325.26 billion (US$10.1 billion), a 54.2% rise compared to the previous year. This growth was driven by strong demand for AI technology and advanced chip manufacturing processes, particularly in the smartphone sector. TSMC's revenues also surged by 36% year-on-year to US$23.5 billion. The company anticipates a nearly 30% increase in full-year revenue, indicating a robust market for AI-related products. However, TSMC faces challenges due to geopolitical tensions, particularly between the US and China, which have led to export restrictions on high-tech chip technology. The company is expanding its production capabilities internationally, with plans for factories in Arizona and Japan, aiming to maintain manufacturing quality comparable to its Taiwanese facilities. This expansion is crucial as the semiconductor supply chain remains vulnerable to geopolitical shocks, and TSMC's leadership emphasizes the ongoing demand for AI technology as a long-term trend.