Taiwan Semiconductor Manufacturing Co. (TSM) has a reported a record profit for this year’s third quarter as demand for artificial intelligence (A.I.) microchips remains strong.
The company, which manufactures about three quarters (75%) of all the microchips in the world, reported a 39% increase in its third-quarter profit from last year, easily beating estimates.
Taiwan Semiconductor reported net income of $452.3 billion new Taiwan dollars ($14.76 billion U.S.), which beat the NT$417.69 billion expected among analysts.
Revenue in the July through September period totaled NT$989.92 billion, which topped Wall Street consensus forecasts of NT$977.46 billion. Sales were up 30% from a year earlier.
As Asia’s largest technology company and the leader in manufacturing microchips and semiconductors, TSMC, as the company is known, is benefitting from the A.I. boom.
In terms of guidance, TSMC raised its 2025 revenue growth forecast to the mid-30% range. In July, the company said it expected full-year revenue growth of about 30%.
The company said advanced microchips, with sizes of seven nanometers or smaller, accounted for 74% of its total revenue in this year’s third quarter.
Management said they continue to monitor U.S. tariff developments as Taiwan negotiates for a lower “reciprocal” rate and American government officials weigh duties on semiconductors.
However, TSMC’s executives said they expect to receive some tariff exemptions given that they are investing heavily in new U.S.-based facilities.
TSM stock has gained 51% this year to trade at $304.71 U.S. per share in New York.
