Chipmaker TSMC reports nearly 40% surge in its net profit, thanks to AI

"Taiwan's leading computer chip maker, TSMC, said Thursday that its net profit surged nearly 40% in the last quarter, boosted by the surge in use of artificial intelligence.Taiwan Semiconductor Manufacturing Corp. is the world's biggest semiconductor manufacturer. It reported a net profit of a record 452.3 billion new Taiwan dollars ($15 billion) in the July-September quarter, higher than analysts' forecasts."

"TSMC has been building chip fabrication plants in the United States and Japan to help hedge against risks from China-U.S. trade tensions. The chipmaker is a major supplier to companies such as Apple and Nvidia."Demand for TSMC's products is unyielding," Morningstar analysts wrote in a note this month. "Given TSMC's dominance, we doubt the company would be hindered if it faced tariffs on shipments to U.S. customers. We expect AI demand to stay resilient.""

TSMC reported a record net profit of 452.3 billion new Taiwan dollars ($15 billion) in the July-September quarter, a nearly 40% increase. Revenue rose about 30% year-on-year in the same period. The profit surge was driven by sharply increased demand for chips used in artificial intelligence. TSMC is expanding manufacturing capacity with new fabrication plants in the United States and Japan to hedge against China-U.S. trade tensions. The company supplies major clients including Apple and Nvidia. Demand for TSMC products remains strong, and the company has committed substantial U.S. investments totaling $165 billion combined.

Read at Fast Company