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TSMC Surges to Record Profit on AI Chip Demand
12 Jan
Summary
- TSMC anticipates a record 27% net profit jump for Q4.
- AI server accelerators and next-gen chips are key growth drivers.
- The company is investing significantly in US chip factories.
Taiwan Semiconductor Manufacturing Co. (TSMC) is expected to report a record-breaking fourth-quarter net profit, with projections indicating a 27% surge. This remarkable growth is largely attributed to the escalating demand for artificial intelligence infrastructure. The company's advanced 3-nanometre chip capacity has seen full utilization, primarily supporting the production of chips for the latest iPhone series and robust AI applications.
Looking beyond the current quarter, TSMC anticipates substantial revenue growth in the coming years, estimated between 25%-30% in 2026. This optimistic forecast is bolstered by the booming market for AI server accelerators, which is projected for significant year-over-year expansion. Furthermore, the anticipated contributions from TSMC's next-generation 2-nanometre node are expected to solidify its market leadership.
In line with its global expansion strategy, TSMC is making substantial investments in new chip manufacturing facilities. The company is committing $165 billion to establish chip factories in Arizona, USA, with indications of further investment in the country. These moves underscore TSMC's commitment to meeting global demand and strengthening its position in key markets.
