TSMC hits yet another record as profit surges 39%, beating estimates on AI chip demand surge

On Thursday, Taiwan Semiconductor Manufacturing Company (TSMC) announced a remarkable 39.1% surge in its third-quarter profits compared to the previous year, achieving a new record. This impressive growth is largely attributed to the sustained demand for artificial intelligence chips. In the September quarter, TSMC recorded revenues of NT$989.92 billion, reflecting a 30.3% increase year-over-year and surpassing market expectations. The company’s high-performance computing segment, which includes applications for artificial intelligence and 5G, was the driving force behind these robust sales figures. As Asia's leading technology firm by market capitalization, TSMC has capitalized on the AI boom, producing cutting-edge AI processors for major clients like Nvidia and Apple. Notably, advanced chips—those with sizes of 7 nanometers or smaller—represented a staggering 74% of TSMC's total wafer revenue during the quarter. In the semiconductor industry, smaller nanometer sizes are indicative of more compact transistor designs, resulting in enhanced processing power and efficiency.