Chip industry: TSMC again with a surprisingly significant jump in profits
The Taiwanese chipmaker is exceeding expectations with its results. This could also be a signal to the stock exchanges, where fears of an end to the AI boom are growing.
Tokyo - The world's largest chip fab, Taiwan Semiconductor Manufacturing Company (TSMC), has again posted a surprisingly significant earnings surge, marking its sixth consecutive record quarterly profit. According to the company's latest report, net earnings for the past three months surged 69 percent to an estimated 21.02 billion euros, surpassing analysts' expectations by a wide margin.
Just a week ago, TSMC announced a 50 percent jump in revenue, reaching a record high of 41.66 billion euros. It appears this trend will continue, as the chipmaker is pushing the capacity limits due to the booming artificial intelligence (AI) industry. Nvidia and Apple are among TSMC's key clients. The company plans to invest around 52-56 billion euros in expanding its manufacturing facilities this year.
Looking further ahead, valued Asian conglomerate Asia plans to allocate a whopping 265 billion dollars in new plants in Arizona over the medium term. However, this investment might not be sufficient to meet the soaring demand, according to analyst Charlie Chan from Morgan Stanley. Industry insiders suspect TSMC is considering building an additional plant in Texas.
Billionaire Elon Musk has suggested that the Taiwanese company might lease a portion of the mega-chip factory "Terafab" he plans to build in Texas.
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