TSMC Soars with Record Profit Fueled by AI Chip Demand

Taiwan Semiconductor Manufacturing Co. (TSMC) reported an impressive 54% increase in quarterly profits driven by surging AI chip demand. The company, facing minimal competition, plans to double its capital spending to meet the growing demand and maintain its industry's dominance.

TSMC, the global leader in contract chip manufacturing, announced a remarkable 54% surge in quarterly profit, exceeding expectations due to booming demand for AI chips. This growth trend was highlighted at their earnings call on Thursday.

The company forecasts its capital expenditure to more than double this quarter, reaching approximately $11.5 billion, to accommodate the thriving demand. TSMC projects a 30% growth in 2024 U.S. dollar revenue, a rise from previous forecasts.

Despite competition from Intel and Samsung, TSMC's strong performance indicates robust and sustained demand in the AI sector. With overseas expansion plans, including three new facilities in Arizona, the company solidifies its position in catering to global requirements.

(With inputs from agencies.)