Taiwan Semiconductor earnings call: Confidence in the trend of artificial intelligence is "increasing," raising full-year capital expenditure to $40-42 billion
Taiwan Semiconductor's Q3 financial report shows that net profit has reached a record high, with capital expenditure raised to $40-42 billion. CEO C.C. Wei stated that AI demand is strong, confidence in the AI trend has increased, and sales are expected to continue growing in 2025. Fourth-quarter sales are expected to be between $32.2-33.4 billion, with a gross margin between 59%-61%. The 2-nanometer process is expected to enter mass production in the later part of this quarter, and the A16 chip is expected to enter mass production in the second half of next year
On the 16th, Taiwan Semiconductor Manufacturing Company (TSMC) announced its Q3 financial report, with AI chip demand remaining strong. TSMC's Q3 net profit reached a historical high, exceeding expectations with a growth of 39%, and capital expenditure reached $9.7 billion.
In the subsequent earnings call, TSMC projected its full-year capital expenditure to be between $40 billion and $42 billion, an upward adjustment from the previous expectation of $38 billion to $42 billion.
At the same time, TSMC stated that sales in 2025 will grow close to mid-range levels. TSMC expects Q4 sales to be between $32.2 billion and $33.4 billion, surpassing the estimate of $31.23 billion; it anticipates a Q4 gross margin of 59% to 61%, better than the estimated 57%.
TSMC CEO C.C. Wei stated:
AI demand remains strong, even stronger than we anticipated three months ago. Confidence in the major trend of artificial intelligence is "increasing," and AI demand will remain strong throughout 2025, accelerating the pace of capacity expansion in the United States.
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