TSMC sparkles driven by Nvidia and Apple

TSMC’s Q3 profit was up 54.2% y-o-y at $10.06 billion on revenue of $23.6 billion propelled by orders from Nvidia and Apple.

TSMC said demand for HPC chips tripled this year compared to last.

“One of my key customers said the demand right now is insane,” said CEO C.C. Wei, “the demand is real. I believe it’s just the beginning of this demand and it will continue for many years.”

Wei added that AI server chips will account for 14% to 16% of TSMC’s revenue this year. 

TSMC forecasts full-year revenue to be up nearly 30%.

Q4 revenues are forecast st between $26.1 billion and $26.9 billion.

In Q3: 3nm accounted for 20% of total wafer revenue; 5nm accounted for 32%; 7nm accounted for 17%.

Advanced technologies – 7nm and better – , accounted for 69% of total wafer revenue.

“We have been using AI and machine learning in our fabs and R&D operations,” said Wei, “by using AI, we are able to create more value by driving greater productivity, efficiency, speed, quality. Think about it: A 1% productivity gain is almost equal to about $1 billion to TSMC.”

2025 capex will be higher than this year’s $30 billion.

The company’s first Arizona fab will start mass production in early 2025 and the second in 2028.

Its first Japanese fab started  production this quarter and its second Japan fab will go into production in 2027.

Its first European fab will move into production in 2027.