Driven by a massive surge in investment in technological infrastructure, TSMC is on the verge of announcing unprecedented profits for the sixth consecutive quarter.
The global market leader in advanced semiconductor manufacturing has seen its market value rise to around €1.8 trillion, almost double that of Samsung Electronics, largely thanks to its crucial role as the main producer for industry giants such as Apple and Nvidia.
Market forecasts from LSEG SmartEstimate point to a substantial 65% increase in net profit for the third quarter, which could reach 746.3 billion New Taiwan dollars (€20.9 billion). If the figures exceed 706.56 billion New Taiwan dollars (€19.7 billion), the company will have achieved its highest quarterly profit to date and realised eleven consecutive quarters of financial growth.
This follows a recent report that showed a 50% year-on-year increase in revenue, beating earlier market expectations.
The ongoing AI revolution is driving this growth, particularly through the strong demand for TSMC’s advanced CoWoS packaging technology and its 3nm chip architecture.
On the back of this momentum, analysts at Morgan Stanley expect the company may revise its annual revenue growth targets upwards to a range from the low to mid‑40%.
To support this trajectory, TSMC is allocating €237 billion for the construction of plants in Arizona. In addition, the company is considering a possible expansion into Texas.
According to some experts, limited space in Arizona will make an expansion into Texas necessary within five years. Others mainly see such a move as a strategic gesture that aligns with the political and trade interests of the United States. They point out that the plants in Arizona are still under development.
TSMC has already raised its capital expenditure forecast for this year to an amount between €53-€57 billion. This shows the scale of the investments the company is planning to meet growing demand.
TSMC’s shares, which are traded in Taipei, have risen by around 60% this year. In doing so, they are following the general upward trend in the broader stock market.
Business AM
Ltd
