AI Demand Skyrockets
Pune, India, October 13, 2025– Taiwan Semiconductor Manufacturing Company (TSMC), the world’s largest contract chipmaker, is expected to report a record-breaking profit for the third quarter, due to the booming AI demand for artificial intelligence (AI) infrastructure. Analysts predict a 28% jump in net profit, marking the seventh straight quarter of growth for the tech giant.
TSMC, a key supplier to global tech leaders like Nvidia and Apple, is forecast to earn T$415.4 billion (approximately $13.55 billion) for the three months ending September 30, according to estimates compiled by LSEG SmartEstimate. This would surpass its previous high of T$398.3 billion and reflect the company’s growing dominance in the AI chip market amid rising AI demand worldwide.
The company has already reported a 30% rise in revenue for the quarter, beating market expectations. Industry experts believe this momentum will continue, driven by the increasing need for advanced chips used in AI applications, cloud computing, and data centers where AI demand is surging rapidly.
Mario Morales, a senior executive at research firm IDC, said TSMC is well-positioned to outperform its competitors. “AI infrastructure is growing at an incredible pace, and companies like Nvidia and AMD rely heavily on TSMC to meet their chip production needs,” he explained, noting that AI demand remains a critical factor shaping the market.
Morales expects TSMC’s revenue to grow between 30% and 35% this year, citing the company’s strong position in the supply chain and its ability to deliver cutting-edge technology at scale, which is increasingly important given the sustained AI demand.
Despite global trade tensions and tariff uncertainties, the demand for AI chips remains strong. Morales described the AI infrastructure race as a “strategic land grab,” with cloud service providers and tech companies investing heavily to secure their place in the future of computing.
While the outlook for TSMC is largely positive, there are concerns about how U.S. trade policies might affect its operations. Taiwan’s exports to the United States currently face a 20% tariff, although semiconductors are not included in that list.
Last month, U.S. Commerce Secretary Howard Lutnick suggested that Taiwanese companies should split their chip production evenly between Taiwan and the United States. Currently, most of TSMC’s manufacturing takes place in Taiwan. The proposal was met with resistance from Taiwan, but TSMC is already investing heavily in the U.S., with $165 billion allocated for new factories in Arizona.
Despite the tariff talk, investor confidence in TSMC remains strong. The company’s shares have risen 30% this year, driven by optimism around AI and its role in powering next-generation technologies, fueled largely by escalating AI demand. This surge has helped lift Taiwan’s benchmark stock index by 16.9% over the same period.
TSMC is scheduled to release its official earnings report on Thursday, followed by an earnings call at 0600 GMT. During the call, the company is expected to provide guidance for the fourth quarter and address any concerns related to trade policies and future investments.
TSMC is Asia’s most valuable publicly listed company, with a market capitalization of around $1.22 trillion, nearly three times that of its closest rival, Samsung Electronics. Its leadership in advanced chip manufacturing has made it a cornerstone of the global tech industry, especially as AI continues to reshape how businesses and consumers interact with technology.
As the world moves deeper into the AI era, TSMC’s role becomes even more critical. From powering smart devices to enabling complex data processing in cloud environments, the company’s chips are at the heart of the digital transformation.
With AI demand showing no signs of slowing down, TSMC is expected to maintain its growth trajectory. The company’s investments in global manufacturing, its partnerships with top tech firms, and its ability to deliver high-performance chips make it a key player in the future of technology.
While geopolitical challenges and trade policies may pose risks, TSMC’s strong fundamentals and strategic vision suggest it will continue to lead the semiconductor industry in the years to come.
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