TSMC posts forecast-beating Q3 revenue surge on AI boom

[TAIPEI] Taiwan Semiconductor Manufacturing Company (TSMC), the world’s largest contract chipmaker, reported on Thursday (Oct 9) that third-quarter revenue rose 30 per cent year on year, beating the market forecast, as demand for the company’s products leapt on surging interest in artificial intelligence (AI) applications.

Revenue for July to September came in at NT$989.9 billion (S$42 billion), according to Reuters calculations, compared with NT$759.7 billion in the year-ago period.

The latest result handily topped an LSEG SmartEstimate of NT$973.3 billion drawn from 22 analysts, and was in the mid-point of guidance of US$31.8 billion to US$33 billion issued by TSMC in July in its last earnings call. TSMC only gives guidance in US dollars.

TSMC will report full third-quarter earnings on Oct 16, including an updated outlook for the current quarter and full year.

The company, whose customers include Nvidia and Apple, has been a major beneficiary of advances in AI, which has more than offset the tapering off of pandemic-led demand for chips used in consumer electronics such as tablets.

TSMC’s Taipei-listed shares have gained 34 per cent so far this year, compared with an 18.5 per cent rise for the broader market.

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Taiwan’s Foxconn, the world’s largest contract electronics maker and Nvidia’s biggest server maker, has also reported bumper sales, logging its highest-ever revenue for the third quarter. REUTERS