TAIPEI (Reuters) — TSMC, the world’s main producer of advanced AI chips, on Thursday posted a forecast-smashing 35% jump in fourth-quarter profit to record levels, predicted robust growth this year and flagged more U.S. manufacturing capacity was in the works.
Riding high on what it calls the “AI mega trend,” TSMC said its customers were “providing strong signals” and reaching out directly to request capacity.
The Taiwanese company, which counts Nvidia and Apple as major customers, last year announced plans to invest $100 billion in the U.S., on top of $65 billion pledged for three plants in the state of Arizona, one of which is up and running.
Additional land had been purchased in Arizona, TSMC Chief Executive C.C. Wei told a news briefing, saying that provided a hint to its U.S. plans but did not elaborate.
U.S. Secretary of Commerce Howard Lutnick said in a podcast released last week that TSMC was set to invest more in the country. The New York Times has also reported that the Trump administration is nearing a trade deal with Taiwan to reduce its tariff rate to 15% from 20% and wants TSMC to commit to building at least five more facilities in Arizona.
Taiwan signaled on Thursday that a tariff deal with the United States could come soon.
Net profit for October-December climbed to T$505.7 billion ($16 billion), its seventh straight quarter of double-digit growth, well ahead of a T$478.4 billion LSEG SmartEstimate. First-quarter revenue could surge as much as 40% from a year earlier to $35.8 billion, it said.
It added that capital spending this year could jump as much as 37% to $56 billion, and would increase “significantly” in 2028 and 2029.
Capacity was very tight right now and it was working hard to narrow the gap between supply and demand, it said, adding that construction was underway at a second fab in Japan, while it will continue to invest in Taiwan.
The boom in artificial intelligence has helped TSMC, Asia’s most valuable listed company, outshine its rivals. It now boasts a market capitalization of around $1.4 trillion — more than twice that of South Korea’s Samsung Electronics.
TSMC’s Taipei-listed shares jumped 44% last year, outperforming a 25.7% rise for the broader market
