Taiwan Semiconductor Manufacturing Co., the world's largest contract chipmaker, reported on Thursday that quarterly profit rose more than 54% and is expected to maintain strong growth as demand for artificial intelligence (AI) chips surges.
TSMC estimates that its capital expenditures will more than double this quarter to about $11.5 billion, and its budget may increase further next year as it expects demand for its products to remain healthy. Full-year 2024 revenue is expected to grow nearly 30% in U.S. dollar terms, compared with previous guidance of just above around 20%.
TSMC said revenue from artificial intelligence processors will account for about 15% of its total revenue this year and said capital expenditures in 2025 may be higher than this year, but did not provide specific figures.
Additionally, TSMC forecasts similar prospects for the next five years.
Piter Yang, fund manager of Fuhua Securities Investment Trust, said that TSMC's performance dispelled concerns about the chip industry caused by ASML's poor profitability.
"TSMC is a dominant company. It's the only company with advanced process technologies that you can't find in companies like Intel or Samsung," he said.