Taiwan Semiconductor Manufacturing Company (TSMC) is set to witness a surge of 40% in its profits for the 4rd quarter ending in September.

Figures 

As per the revenue report published on the website of TSMC the Y-o-Y increase in revenue for the 3rd quarter stands at 39.6 % with a revenue of NT$ 251,873 Billion as compared to NT$ 180,430 in September last year. TSMC, beyond all clutter, has managed to beat much of the market expectations regarding its revenue. 

As per LSEG SmartEstimates taken from 22 analysts, TSMC is set to report a profit of T$298.2 billion ($9.27 billion) for the quarter ended in September 2024. It had reported a net profit of T$211 billion in September last year. 

SmartEstimates

LSEG SmartEstimates is a calculation that determines the accuracy and timeliness of analyst estimates. It relies on the most recent and accurate estimates. It takes into account the consistently accurate forecasts from analysts. 

What's driving the Growth? 

The surge is expected to happen out of the AI boom that has got the market on its edge with companies trying their hands in all sorts of new and innovative AI tech to capture the market and drive innovation. 

Expansion Plans 

While TSMC is already working on its plants in Arizona, USA, it is planning likely for more plants in Europe with emboldening its focus on the AI chip market. 

“They have started construction of the first fab in Dresden, they are already planning the next few fabs in the future for different market sectors as well,” Taiwan’s National Science and Technology Council Minister Wu Cheng-wen said on Monday (Oct 14).

It comes amid rising global geopolitical tension against China that TSMC is expanding its foot in multiple continents namely America, Europe & Japan in Asia. 

Revisions Made

TSMC revisited its capital expenditure plans in July taking it to $30-$32 Billion as against the previous forecast of $28-$32 billion. 

TSMC 

TSMC is a multinational semiconductor company headquartered in Hsinchu, colloquially referred to as the "sacred mountain protecting the country". It is the world's largest contract chipmaker supplying its innovations to Apple, Nvidia contributing to Taiwan’s export oriented economy.