Taiwan Semiconductor Manufacturing Co. (TSMC) posted a better-than-anticipated 39% jump in quarterly profit, the latest sign of rising demand for components like Nvidia chips that power AI.
TSMC reported net income of NT$452.3 billion ($19.11 billion) in the September quarter, compared with the NT$405.5 billion average analysts’ estimate. The company previously reported a better-than-anticipated 30% increase in revenue, reflecting the billions of dollars that tech companies from OpenAI to Oracle are funneling into data centres in the post-ChatGPT era.
The results underscore how TSMC, the go-to chipmaker for Apple and most of the world’s biggest chip designers, remains one of the bigger beneficiaries of a spending spree on AI infrastructure that’s expected to cross the US$1 trillion ($1.29 trillion) mark in coming years.
The investment rush, coupled with a rapid climb in tech stock valuations, has drawn comparisons to the dotcom bubble given the persistent absence of mainstream AI applications and services.
As the world’s most advanced manufacturer of semiconductors, TSMC plays a dominant role in an AI investment frenzy with Nvidia at its heart. The company makes the powerful accelerators vital to the training and operation of AI services like ChatGPT and DeepSeek. In July, TSMC raised its outlook for 2025 revenue growth to about 30%, reflecting that market leadership.
See also: ASML orders beat expectations as AI arms race boosts demand
It’s also the sole maker of processors for the iPhone and many other gadgets, at a time consumer demand for electronics remains uncertain given the tit-for-tat US-China trade conflict.
Businesses across the global semiconductor supply chain are bracing for disruptions after China imposed curbs on rare-earth mineral exports — essential to most technology devices — and the US responded with additional tariffs and restrictions on software sales to the Asian nation.
See also: Nvidia partner Hon Hai meets sales estimates on strong AI demand
Still, ASML Holding, a major supplier of gear to TSMC, on Wednesday said demand for its most sophisticated chip-making machines is soaring thanks to the artificial intelligence boom.
TSMC CEO C.C. Wei has repeatedly affirmed his confidence in the sustainability of AI demand. Yet in July, he warned about the uncertainty around the Trump administration’s tariffs and geopolitical tensions in general.
The company, which has earmarked US$38 billion to US$42 billion for capital spending this year, is expanding in the US in part to alleviate such risks. It’s pledged to invest US$165 billion ramping up manufacturing in Arizona, part of a global expansion that also encompasses Europe and Japan.
