TSMC's official quarterly financial report and market analysis

TSMC's Third-Quarter Profit Soars 54% to Record NT$325.3 Billion, Exceeding Forecasts on AI Chip Demand

Oct 16, 2024, 10:04 PM

Taiwan Semiconductor Manufacturing Co. (TSMC), the world's leading producer of advanced chips for artificial intelligence applications, reported a better-than-expected 54% rise in third-quarter net profit to NT$325.3 billion (US$10.06 billion), surpassing market forecasts of NT$299.3 billion. Earnings per share reached NT$12.54 (US$1.94 per ADR unit). The strong performance was driven by soaring demand for AI semiconductors from major clients such as Apple, Nvidia, and AMD, offsetting weakness in the mobile industry. Revenue for the quarter was NT$759.69 billion (US$23.50 billion), matching preliminary figures. TSMC's gross margin improved to 57.8%, exceeding its guidance of 53.5% to 55.5%, while operating margin reached 47.5%, surpassing expectations. The company invested $6.4 billion in capital expenditures during the quarter, reflecting its commitment to advanced technologies like its industry-leading 3nm and 5nm processes.