Apple and Nvidia Major Clients
Impact of Surge in Order Demand Due to AI Boom
There is a forecast that the net profit of TSMC, the world's largest foundry (semiconductor contract manufacturing) company, for the second quarter of this year will increase by 30% compared to the same period last year, driven by the surge in demand for artificial intelligence (AI).
On the 14th (local time), market analysis firm LSEG conducted a survey of 20 analysts and estimated that TSMC's net profit for the second quarter of this year will reach 236.1 billion Taiwan dollars. This is a 29.9% increase from the net profit of 181.8 billion Taiwan dollars in the same period last year.
TSMC's major customers include iPhone manufacturer Apple and AI chip leader Nvidia. It is analyzed that TSMC's sales have significantly increased as orders from these companies surged due to the AI wave.
TSMC is scheduled to announce its earnings on the 18th and update its annual guidance. The market expects TSMC's third-quarter performance to continue the positive trend.
Additionally, TSMC plans to disclose the scale of capital expenditures related to the expansion of foundry production. In its first-quarter earnings announcement in April, TSMC stated that its capital expenditure forecast for this year is between 28 billion and 32 billion dollars, maintaining the level of 30.45 billion dollars from last year, with 70-80% of the investment directed towards advanced technology sectors. While emphasizing that most of its manufacturing production will be in Taiwan, TSMC is currently making large-scale investments, including building three factories worth 65 billion dollars in Arizona, USA.
TSMC's stock price has risen 75% since the beginning of this year. Accordingly, the Taiwan stock market also increased by 33% during the same period. Notably, TSMC's American Depositary Receipt (ADR) market capitalization surpassed 1 trillion dollars intraday on the 8th.
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