Taiwan Semiconductor Manufacturing Co (TSMC), the world’s largest contract chipmaker, is set to report its third-quarter earnings on Thursday, and analysts are anticipating a strong showing. The company is expected to report a revenue of $23.096 billion, representing a staggering 34% year-over-year growth. This impressive growth is being attributed to the surging demand for AI chips, as companies around the world race to embrace the power of artificial intelligence.
The global semiconductor industry is also witnessing a shift in focus, with nations prioritizing the establishment of robust domestic semiconductor supply chains. This trend is driven by a desire to reduce dependence on Asian countries like China, further strengthening the position of companies like TSMC.
TSMC’s commitment to geographical diversification is evident in its recent investments in new manufacturing facilities in the US, Japan, and Germany. The company has already allocated over $65 billion for three plants in Arizona, underscoring its strategic focus on expanding its global footprint.
Beyond the US, TSMC is also exploring opportunities in Europe. Taiwan’s National Science and Technology Council Minister Wu Cheng-wen has indicated that the company is considering establishing AI chip plants in Europe. This move underscores the growing importance of the AI market, particularly for chips catering to major players like Nvidia and AMD.
TSMC’s stock has been on a stellar run, rising over 109% in the past year. Investors are clearly confident in the company’s future prospects, driven by the growing demand for its chips and its strategic global expansion. The company’s strong financial performance, fueled by the AI boom and its commitment to building a resilient global supply chain, positions it as a key player in the future of technology.
