TSMC Anticipates Record Q3 Profit Amid AI Surge

TAIPEI, Taiwan — Taiwan Semiconductor Manufacturing Co. (TSMC), the world’s largest manufacturer of advanced artificial intelligence chips, is projected to report a record profit in the third quarter of 2025. Analysts anticipate a 28% increase, driven by the growing demand for AI infrastructure.

For the three months ending September 30, TSMC is expected to announce a net profit of T$415.4 billion ($13.55 billion), according to an LSEG SmartEstimate based on 20 analysts. If the profit exceeds T$398.3 billion, it will mark the company’s highest quarterly net income and signify its seventh consecutive quarter of profit growth.

Mario Morales, a group vice president at research firm IDC, expressed confidence in TSMC’s future prospects. “I expect TSMC will continue to outperform its peers due to the ongoing exponential growth of AI infrastructure investments,” he noted. Major chip suppliers like Nvidia and AMD rely heavily on TSMC for production.

While Morales acknowledges the potential impact of U.S. tariffs on the company’s outlook, he believes that the current market remains a strategic battleground for cloud-service providers and other tech businesses. “Investment will likely keep flowing into AI,” he added.

TSMC, which holds a market capitalization of approximately $1.22 trillion, is significantly more valuable than its South Korean competitor, Samsung Electronics. The company plans to report its financial results on Thursday, followed by a discussion about its fourth-quarter guidance during an earnings call at 0600 GMT.

There remains some uncertainty regarding how U.S. tariffs will affect TSMC’s operations. Currently, Taiwan’s exports to the United States are subject to a 20% tariff, although chips are exempt. U.S. Secretary of Commerce Howard Lutnick recently suggested that Taiwanese firms share production between Taiwan and the U.S., a proposal that Taiwan has rejected. TSMC is investing $165 billion in new factories in Arizona as part of its expansion into U.S. manufacturing.

Despite the ongoing concerns over tariffs, TSMC’s shares have risen 30% this year, largely due to optimism surrounding AI. This increase has contributed to a 16.9% advance in the benchmark Taiwanese index during the same period.

($1 = 30.66 Taiwan dollars)