An image of a semiconductor wafer at the Taiwan Semiconductor Manufacturing Innovation Museum in Hsinchu, Taiwan, on January 11, 2022.
I-Hwa Cheng | Bloomberg | Getty Images
Taiwan Semiconductor Manufacturing Company on Thursday reported a 54% increase in net profit, as global chipmakers continued to benefit from demand fueled by AI applications.
The company’s net income was 352.3 billion Taiwan dollars ($10.1 billion) in the July-September quarter, beating the LSEG estimate of 300.2 billion Taiwan dollars cited by Reuters.
TSMC is the world’s largest advanced chip manufacturer, serving customers such as Apple And Nvidia.
Net revenue reached $23.5 billion in the third quarter, up 36% year-on-year, with TSMC’s gross margin rising to 57.8% in the July-September period, compared with 54.5% year-over-year. .3% same period last year.
In the third quarter, “our business was supported by strong smartphone and AI-related demand for our industry-leading 3nm and 5nm technologies,” TSMC said in a statement, referring to its semiconductor nodes.
The company’s Taipei-listed shares are up nearly 75% year to date.
TSCM’s capital spending soared to $6.4 billion in the third quarter, compared with $6.36 billion in the previous three months.
The Taiwanese chipmaker, whose advanced chips are vital to a range of products from smartphones to AI applications, has increased its manufacturing presence worldwide, making major investments in foreign $40 billion for two chip factories in Arizona to meet America’s needs as well opened the first factory in Japan earlier this year.
TSMC’s earnings came the same week as the Netherlands-based company ASMLcompany that supplies machinery to Taiwanese company, gives lower-than-expected net revenue forecast, sending stocks plummeting.
Some market participants have questioned the long-term resilience of the AI boom and returns from increased investment in the technology sector – while Young Liu, CEO and chairman of Apple’s main supplier, Foxconn, told CNBC last week that the AI craze “There’s still some time to go,” as advanced language models evolve with each new iteration.
This breaking news story is being updated.
