TSMC Shatters Profit Expectations, Captures AI Demand Surge

Taiwan Semiconductor Manufacturing Co (TSMC) reported a record 54% rise in quarterly profit driven by a surge in demand for AI chips. The company plans to increase capital spending as it projects significant revenue growth in 2024, highlighting sustained AI demand across various industries.

TSMC, the leading global contract chipmaker, announced a 54% increase in quarterly profit, outperforming forecasts. The profit spike is attributed to rising demand for AI chips, a domain where TSMC serves major players such as Apple and Nvidia. The company strategically allocated increased capital spending to support future growth and demand.

Forecasting a 30% revenue growth in 2024, TSMC's Chairman and CEO, C.C. Wei, expressed confidence in the lasting demand for AI technology, stating, "The demand is real and will persist." The strong financial performance comes despite recent concerns in the industry, such as doubts cast by ASML's reduced sales outlook.

With capital investments set to surpass $30 billion this year and further augmentation planned for the future, TSMC emphasizes its pivotal role in the semiconductor industry. New production facilities in Arizona are underway, reinforcing its market position and expanding TSMC's operational footprint while keeping core activities in Taiwan.

(With inputs from agencies.)