TSMC Q3 profit blows past market forecast to a record on AI spending boom

[TAIPEI] TSMC, the world’s main producer of advanced artificial intelligence (AI) chips, posted a 39.1 per cent jump in third-quarter profit to record levels that handily beat market forecasts on Thursday (Oct 16), though US tariffs could weigh on its outlook.

Benefiting from surging demand for advanced chips used in AI applications, Taiwan Semiconductor Manufacturing Company (TSMC) said net profit for July to September climbed to NT$452.3 billion (S$19 billion), its sixth straight quarter of double-digit growth.

That was well ahead of an NT$417.7 billion LSEG SmartEstimate drawn from 20 analysts. SmartEstimates are weighted towards forecasts from analysts who are more consistently accurate.

Trump’s trade policies and threats to put tariffs on semiconductors have created much uncertainty for the global chip industry and TSMC, whose customers include Apple and Nvidia.

TSMC announced plans for a US$100 billion US investment with Trump at the White House in March, on top of US$65 billion pledged for three plants in the state of Arizona, one of which is up and running.

Taiwan-listed shares in TSMC have risen 38 per cent so far this year, largely brushing off concerns about tariffs, and ahead of the 20 per cent rise for the broader market. REUTERS