The world's largest semiconductor foundry, TSMC, is projected to achieve record net profits for the sixth consecutive quarter, driven by demand for artificial intelligence (AI) infrastructure.
On October 12, Reuters reported, citing data compiled by LSEG from 16 analysts, that TSMC's net profit for the third quarter is expected to reach 746.3 billion New Taiwan dollars (approximately $31.2 billion), a 65% increase compared to the same period last year.
In the previous quarter, TSMC recorded a net profit of 706.6 billion New Taiwan dollars, setting a new quarterly record.
Analysts noted that demand for TSMC's AI semiconductor production capabilities and its advanced packaging technology, known as CoWoS (Chip on Wafer on Substrate), remains strong. TSMC, a key supplier for NVIDIA and Apple, is considered a major beneficiary of the AI boom.
On October 8, TSMC announced that its revenue for the third quarter reached 1.494 trillion New Taiwan dollars, an increase of about 50% from the same period last year.
TSMC is set to release detailed earnings, including net profit, as well as its outlook for the fourth quarter and the full year on October 15 at 3 PM KST.
The market is closely watching whether TSMC will provide specific details about its recently reported plans to expand production facilities in the United States during this earnings announcement.
TSMC is investing a total of $265 billion (approximately 353.4 trillion won) to build semiconductor factories in Arizona, which includes a previously announced additional investment plan of $100 billion disclosed in July.
Additionally, reports surfaced last month indicating that TSMC is considering further investments in Texas beyond Arizona. Earlier this month, Elon Musk, CEO of SpaceX and Tesla, mentioned that discussions are underway regarding TSMC's potential involvement in the construction and operation of its large AI semiconductor factory project, 'Terafab.'
However, analysts have differing views on the necessity of TSMC's additional investment in Texas. Analyst Chan recently suggested that due to increasing customer demand, the Arizona facility may face space constraints within the next five years, making additional investment in Texas necessary.
Conversely, Felix Lee, an analyst at Morningstar, pointed out that there are still facilities planned for construction in Arizona, indicating that there is no urgent need to expedite expansion in Texas. Nonetheless, he noted that Texas has a robust semiconductor industry ecosystem and workforce, making it suitable for long-term expansion in the 2030s to 2040s.
* This article has been translated by AI.
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