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Taiwan chipmaker TSMC forecasts higher-than-expected profit as AI demand grows

Oct 17, 2024, 8:10am EDT
East Asia
TSMC logo is seen at TSMC Museum of Innovation in Hsinchu, Taiwan
Ann Wang/File Photo/Reuters
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Taiwan’s TSMC, the world’s largest contract chipmaker, said Thursday that its full-year revenue for 2024 was expected to grow by nearly 30%, as demand for the chips used to power artificial intelligence soars.

TSMC, whose customers include tech giants like Apple and Nvidia, registered sales in the third quarter that were 54% higher than anticipated.

The announcement reassured investors and analysts — some had raised concern about the AI industry’s outlook after Dutch company ASML, the world’s biggest producer of semiconductor equipment, reported slowing sales and revised financial guidance for 2025. ASML’s forecast triggered a stock selloff in Europe and Asia, with the company’s share price reaching its lowest level since 1998.

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Investors were awaiting TSMC’s earnings forecast to serve as an indicator of the broader industry’s health, Bloomberg noted. “The demand is real and I believe it’s just the beginning,” TSMC’s CEO C. C. Wei told reporters.

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