TSMC, the world's largest contract chip manufacturer, reported a more than 54% increase in quarterly profit, driven by soaring demand for AI chips. The company expects to maintain strong growth momentum.
TSMC forecasts its capital expenditure for the current quarter to more than double, reaching approximately $11.5 billion. Looking ahead to next year, the budget may increase further as demand for its products remains robust. The company estimates its 2024 revenue in dollar terms will grow nearly 30%, surpassing previous guidance of around 20%.
AI processors are projected to account for about 15% of TSMC's total revenue this year. The company also anticipates higher capital expenditures in 2025 compared to this year, although specific figures were not disclosed. TSMC predicts a similar positive outlook for the next five years.
Piter Yang, a fund manager at Fuhwa Securities Investment Trust, noted that TSMC's strong performance alleviates concerns in the chip industry sparked by poor earnings from ASML. He emphasized TSMC’s dominance in advanced process technologies, which are unmatched by competitors like Intel or Samsung.
