TSMC's Record Profit and Ambitious Expansion Plans Highlight AI Surge

TSMC, the world's largest contract chipmaker, reported a 54% increase in quarterly profit driven by high demand for AI chips. The company plans to significantly increase capital spending, forecasting a 30% revenue growth for 2024. TSMC's strong performance underscores sustained AI demand despite industry concerns.

TSMC, the global leader in contract chip manufacturing, has reported an unprecedented 54% rise in quarterly profit, attributed to the booming demand for artificial intelligence (AI) chips. The company has announced plans to double its capital expenditure in the next quarter to approximately $11.5 billion.

Taiwan Semiconductor Manufacturing Co, whose clients include tech giants Apple and Nvidia, is poised for a near 30% revenue growth in 2024. This announcement follows industry doubts highlighted by a lower than expected sales forecast from ASML, the largest supplier of chipmaking equipment.

Besides expanding its AI chip production capabilities, TSMC is investing heavily in building new factories in the United States, with plans for three plants in Arizona. The company anticipates its first Arizona factory to begin volume production in 2025, reinforcing its commitment to meeting the surging global AI demand.

(With inputs from agencies.)