Taiwan Semiconductor Manufacturing (TSMC), the world’s largest manufacturer of advanced artificial intelligence (AI) chips, increased its net profit by 77.4 percent to a record 706.6 billion Taiwan dollars (TWD; 462.7 billion CZK) in the second quarter. The company announced this in today’s press release. The firm is benefiting from growing demand for advanced chips used in AI applications. The company also announced that it is investing an additional 100 billion USD in the U.S. state of Arizona.
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AI boom breaking records. Giant TSMC increases profit by 77% and invests another 100 billion dollars in the USA
TSMC is a major supplier to American companies Nvidia and Apple. The Taiwanese company has recorded double-digit percentage profit growth for the ninth consecutive quarter and its results exceeded expectations. According to LSEG, analysts on average expected the company to generate a profit of 632.6 billion TWD. The company’s revenue increased by 36 percent to 1.3 trillion TWD in the second quarter. TSMC is Asia’s most valuable company. The company’s market capitalization now stands at around 1.97 trillion USD, which is almost double the market capitalization of its South Korean competitor Samsung Electronics.
TSMC shares have strengthened by 59 percent since the beginning of the year. Governments and tech giants around the world are investing enormous sums into building data centers that can train and operate AI tools such as chatbots, image generators, or agents capable of performing tasks. This has significantly increased demand for chips, but has also caused their shortage in the market and a sharp rise in prices, which helps chip manufacturers substantially increase their profits.
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TSMC increases capital expenditures and expects 40% revenue growth
TSMC has also increased its capital expenditure outlook for this year by up to 14 percent to 60 to 64 billion USD in connection with AI development. Capital expenditures are an important indicator of management’s confidence in sustained demand for AI. Thanks to high capital expenditures and sharp growth in profit margins, TSMC has become a barometer of demand in the global semiconductor industry.
The company expects revenue growth in U.S. dollar terms of more than 40 percent this year to 44.6 billion to 45.8 billion USD. The previous forecast anticipated an increase of more than 30 percent. TSMC previously announced that it is investing 165 billion USD in building factories in Arizona and that it plans six manufacturing facilities there. It has now stated that it will increase its investment in the region by an additional 100 billion USD.
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Source: ČTK
