Taiwan Semiconductor Manufacturing Co. (TSMC), the world's leading contract chipmaker, is poised to announce a significant 30% increase in second-quarter profit, fueled by soaring demand for advanced chips used in artificial intelligence applications. The company, whose key clients include Apple and Nvidia, is set to report a net profit of T$236.1 billion ($7.25 billion) for the quarter ending June 30, according to LSEG SmartEstimates.
The surge in AI-related demand has propelled TSMC's stock to record highs, with its American Depositary Receipts recently reaching a trillion-dollar market value. The company's robust performance in the second quarter follows a substantial increase in revenue, surpassing market expectations.
"TSMC's third-quarter outlook for all product lines appears very promising," commented Li Fang-kuo, Chairman of President Capital Management Co. TSMC's upcoming earnings call will provide updated guidance for the current quarter and the full year, including details on its expansive capital expenditure plans aimed at bolstering production capabilities.
Despite ongoing investments in new facilities overseas, notably $65 billion earmarked for three plants in Arizona, TSMC remains committed to maintaining the majority of its manufacturing operations in Taiwan. The company's strategic investments and dominance in the chip manufacturing sector continue to support its market-leading position amid competition from Intel and Samsung.
The AI boom has not only elevated TSMC's financial performance but also bolstered its status as a cornerstone of Taiwan's export-driven economy, reinforcing its critical role in global semiconductor supply chains.
