Taiwan Semiconductor is optimistic about the future prospects for the next five years, with profits in the third quarter exceeding expectations due to the artificial intelligence boom

Taiwan Semiconductor, the world's largest contract chipmaker, reported on Thursday that quarterly profits surged by over 54% due to soaring demand for AI chips, with strong growth expected to continue. The company estimates that its capital expenditure for this quarter will more than double to around $11.5 billion, with the possibility of further increases in next year's budget as it anticipates sustained healthy demand for its products. In US dollar terms, revenue for the full year 2024 is projected to grow by nearly 30%, up from the previous guidance of slightly over 20%. Taiwan Semiconductor stated that revenue from AI processors will account for around 15% of its total revenue this year, and indicated that capital expenditure in 2025 may exceed this year's levels, although specific figures were not provided. Additionally, Taiwan Semiconductor foresees a similar outlook for the next five years. Piter Yang, an investment trust fund manager at Fuhua Securities, commented that Taiwan Semiconductor's performance has alleviated concerns in the chip industry sparked by ASML's lackluster earnings. He stated, "Taiwan Semiconductor is a dominant company. It is the only company with advanced process technology that cannot be found in companies like Intel or Samsung."