By Ben Blanchard and Religion Hung
TAIPEI (Reuters) – Taiwan Semiconductor Manufacturing Co, the primary producer of superior chips utilized in synthetic intelligence purposes, is predicted to report a 40% leap in third-quarter profit on Thursday because of hovering demand.
The world’s largest contract chipmaker, whose prospects embrace Apple and Nvidia, has benefited from the surge in direction of AI.
TSMC is ready to report a web profit of T$298.2 billion ($9.27 billion) for the quarter ended Sept. 30, in keeping with a LSEG SmartEstimate drawn from 22 analysts. SmartEstimates give better weighting to forecasts from analysts who’re extra constantly correct.
That estimate compares to the 2023 third-quarter web profit of T$211 billion.
TSMC final week reported a leap in third-quarter income as reported in Taiwan {dollars}, comfortably beating market expectations. The corporate offers its income outlook in U.S. {dollars} at its earnings convention.
“Most of TSMC’s main purchasers, together with Apple, Nvidia, AMD, Qualcomm and Mediatek are launching new merchandise which closely rely on TSMC’s superior course of applied sciences,” mentioned Li Fang-kuo, chairman of President Capital Administration.
“TSMC’s Q3 earnings will exceed expectations by lots,” Li added.
TSMC, at its quarterly earnings name at 0600 GMT on Thursday, will replace its outlook for the present quarter in addition to for the complete 12 months, together with its capital expenditure because it races to develop manufacturing.
TSMC is spending billions constructing new factories abroad, together with $65 billion on three crops within the U.S. state of Arizona, although it says most manufacturing will stay in Taiwan.
On its final earnings name in July, TSMC raised its full-year income forecast and adjusted its capital expenditure plans for this 12 months to between $30 billion and $32 billion, in contrast with a earlier forecast of $28 billion to $32 billion.
The AI growth has helped drive up the value of shares in Asia’s most precious firm, with TSMC’s Taipei-listed inventory hovering 77% to this point this 12 months, in contrast with a 28% acquire for the broader market.
Hsinchu-headquartered TSMC, colloquially referred to the “sacred mountain defending the nation” for its essential position in Taiwan’s export-oriented economic system, faces little competitors.
As soon as the dominant power within the semiconductor trade, five-decade-old Intel is going through one in all its worst durations as losses mount on the contract manufacturing unit it’s constructing out in hopes of difficult TSMC.
($1 = 32.1570 Taiwan {dollars})
(Reporting by Ben Blanchard and Religion Hung; Enhancing by Christopher Cushing)