Tsmc, jump in profits beyond expectations

Taiwanese semiconductor giant Tsmc announced a 39.1% year-on-year increase in profits in the third quarter, higher than expected and supported by strong demand for chips used in both artificial intelligence and mobile telephony.

Taiwan Semiconductor Manufacturing Company, which counts giants such as Apple (iPhone) and Nvidia among its customers, reported a net profit of NT$ 452.3 billion (EUR 12.7 billion) in the third quarter.

The findings underline how Tsmc remains one of the biggest beneficiaries of a rush of investments in AI infrastructure that is expected to surpass the $1 trillion mark in the coming years. The increase in investments, coupled with a rapid rise in the share valuations of big tech, has prompted comparisons with the dot-com bubble.

In its role as the world's most advanced semiconductor manufacturer, Tsmc plays a dominant role in this artificial intelligence investment frenzy: the company produces the powerful accelerators crucial for the training and operations of AI services such as ChatGPT and DeepSeek. In July, Tsmc raised its forecast for 2025 revenue growth to around 30 per cent, reflecting what is a true market leadership.