TSMC Reports Record Profits Amid AI Chip Demand Surge

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Taiwan Semiconductor Manufacturing Company (TSMC) has announced exceptional financial results for the latest quarter, with a staggering 57% increase in profits reaching $11.4 billion and a 39% rise in revenue totaling $26.88 billion. The world’s leading chipmaker credited this growth largely to soaring demand for its advanced 3nm and 5nm chips, widely used by major companies such as Apple and Nvidia.

Despite looming U.S. restrictions on AI chip exports to China, TSMC's CEO, C.C. Wei, expressed confidence in the company’s communication with U.S. government officials and believes that necessary special permits will be granted. Looking forward, TSMC anticipates revenue for the first quarter of 2025 to be between $25 billion and $25.8 billion, with AI-driven demand likely counterbalancing seasonal declines in the smartphone market.

For the entirety of 2025, the company projects a 20-30% increase in revenue and plans to invest up to $42 billion in expansion efforts. This includes the establishment of new fabrication plants in the U.S., Japan, Germany, and Taiwan, further solidifying TSMC's leadership in the global semiconductor industry. The company's stock has more than doubled in value over the past year, underscoring the growing appetite for high-performance chips fueled by the AI boom.

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