TSMC Posts Another Record Profit on Surging AI Chip Demand

By Sherry Qin

Taiwan Semiconductor Manufacturing Co. delivered another record quarterly profit, defying tariff pressure as demand for chips needed for artificial intelligence and high-performance computing showed no signs of abating.

The world's largest contract chip maker said Thursday that net profit rose 39% from a year earlier to 452.30 billion New Taiwan dollars, equivalent to US$14.77 billion. That soundly beat the NT$410.58 billion consensus estimate of analysts in a FactSet poll and topped the previous quarter's record of NT$398.27 billion.

Revenue rose 30% to NT$989.92 billion in the third quarter, slowing from the previous quarter's pace but still meeting the company's guidance.

The profit beat comes as the recent investment frenzy by U.S. tech giants such as Nvidia and OpenAI has reinforced AI as a key growth engine for the semiconductor sector, positioning TSMC as a key beneficiary given its dominance in advanced chip-making.

Shares in the company ended at a record NT$1,485.00 ahead of the earnings and have climbed nearly 40% so far this year as investors cheered the AI spending boom.

TSMC is facing several challenges, however, including the rapidly shifting global trade environment.

It remains unclear how much U.S. tariffs will affect the chip maker's business, though company executives have played down the impact. The U.S.'s ambitious plan to bring chip manufacturing back home could also complicate TSMC's outlook.

Taiwan currently faces a 20% tariff on U.S.-bound goods while trade negotiations continue. President Trump has also threatened a 100% tariff on all chips exported to the U.S., though exemptions would apply to tech companies that commit to manufacturing in America, such as TSMC.

Adding to the uncertainty, U.S. Commerce Secretary Howard Lutnick recently proposed splitting semiconductor production 50-50 between Taiwan and the U.S., an idea the island's trade officials have rejected.

Analysts said the U.S. proposal could suggest that TSMC's commitments so far aren't enough. The Taiwanese chip giant has pledged to invest $165 billion in the U.S. and is accelerating capacity expansion in Arizona.

Write to Sherry Qin at sherry.qin@wsj.com

(END) Dow Jones Newswires

October 16, 2025 02:10 ET (06:10 GMT)