TSMC bullish on outlook as AI boom blows third-quarter profit past forecasts

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TSMC bullish on outlook as AI boom blows third-quarter profit past forecasts
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TSMC estimated its capital spending in the current quarter would more than double to around $11.5-billion and that the budget was likely to increase further next year

TSMC , the world’s largest contract chip maker, bet on sustaining its strong growth, after reporting on Thursday a forecast-beating 54 per cent jump in quarterly profit driven by soaring demand for chips used in artificial intelligence .

TSMC said revenue from AI processors is set to account for mid-teens percentage of its overall revenue this year. U.S.-listed TSMC shares gained more than 8 per cent, with the company’s market capitalization set to cross $1-trillion if premarket gains hold. TSMC is spending tens of billions of dollars building new factories overseas, including $65-billion on three plants in the U.S. state of Arizona, though it has said most manufacturing will remain in Taiwan.

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