TSMC Surges with AI Demand Driving Record Profits

Taiwan Semiconductor Manufacturing Co (TSMC) reported a 54% jump in quarterly profit driven by high demand for AI chips. The company expects this growth trend to continue, forecasting significant capital expenditure and overseas factory production in the near future, especially in Arizona.

TSMC, the Taiwan Semiconductor Manufacturing Co, announced a remarkable 54% rise in its quarterly profit, driven by an unprecedented demand for its chips in AI technologies. As the world's largest contract chipmaker, it foresees sustained growth, correlating with the rising global reliance on AI across various sectors.

During Thursday's earnings call, TSMC revealed its capital expenditure plans for the year would slightly surpass $30 billion, indicating a continued push towards expanding its production capabilities. This includes a significant investment in U.S. facilities, particularly in Arizona, where it plans to begin volume production in its new factories by 2028.

Despite challenges in the broader chip market, TSMC's stock has soared by 75% this year, reinforcing its position as a pivotal player in Taiwan's economy. The company's critical role is also underscored by its extensive client base, including industry giants like Apple and Nvidia.

(With inputs from agencies.)