WEB DESK: Taiwan Semiconductor Manufacturing Company (TSMC) reported a record profit for the third quarter on Thursday, with earnings surging 39.1 percent from a year earlier. The results easily beat market expectations, reflecting the continued global appetite for artificial intelligence chips.
The company posted revenue of NT$989.92 billion, higher than analysts’ estimates of NT$977.46 billion, while net income climbed to NT$452.3 billion, also topping projections. Compared with the previous quarter, which had itself set a record, net income rose by 13.7 percent. Revenue for the September quarter was up 30.3 percent year-on-year.
As Asia’s most valuable technology company, TSMC has been one of the biggest winners of the AI boom. The firm manufactures some of the world’s most advanced processors for tech giants like Nvidia and Apple, powering the growing wave of AI-driven devices and applications.
AI momentum boosts outlook
“Recent developments in the AI market continue to be very positive,” said TSMC CEO C.C. Wei during an earnings call. He explained that the rising adoption of AI models by consumers has pushed up demand for computing power, and consequently for semiconductors. “Our conviction in the AI mega trend is strengthening,” he said.
Riding this wave of optimism, the company has raised its 2025 revenue growth forecast to the mid-30 percent range, up from its earlier estimate of about 30 percent. TSMC has also lifted its capital spending floor to $40 billion for the year, compared with a previous target of $38 billion, to support expansion and technology upgrades.
Cutting-edge chips lead performance
The company’s high-performance computing segment, which includes AI and 5G applications, accounted for the majority of its July–September sales, contributing 57 percent of total revenue. TSMC said that chips measuring 7 nanometres or smaller represented 74 percent of total wafer revenue in the quarter. In semiconductor design, smaller chip sizes allow for faster and more energy-efficient performance.
According to Counterpoint Research senior analyst William Li, TSMC’s latest earnings mirror the strong momentum of its most advanced 3nm and 4/5nm chips. “Both are being driven by ongoing orders from AI GPU and high-performance computing customers, as well as premium smartphone platforms,” he said.
Keeping an eye on trade policies
TSMC executives noted that they were closely monitoring US tariff developments as Taiwan negotiates for lower reciprocal rates. Washington is also considering industry-specific duties on semiconductors, though TSMC is expected to receive some exemptions.
“We understand there are uncertainties and risks from the potential impact of tariff policies, especially in consumer-related and price-sensitive market segments,” Wei said, adding that the company would plan accordingly to minimise any disruption.
TSMC has been expanding its manufacturing presence in the United States, a move that could reduce its vulnerability to trade-related challenges.
So far this year, TSMC’s shares in Taiwan have gained more than 38 percent, reflecting investor confidence in the company’s ability to capitalise on the global AI chip surge.