TAIPEI, Jan 15 (Reuters) - TSMC, the world's leading producer of advanced AI chips and a key supplier to Nvidia, announced on Thursday that its fourth-quarter profit surged 35% to record highs, significantly exceeding market expectations.
Taiwan Semiconductor Manufacturing Co reported net profit for October-December rose to T$505.7 billion ($16 billion), marking its seventh consecutive quarter of double-digit growth. This performance was attributed to strong demand for chips used in artificial intelligence applications.
The profit figure surpassed a T$478.4 billion LSEG SmartEstimate, which is based on forecasts from 20 analysts and emphasizes those with more consistent accuracy.
TSMC stated that capital spending last year reached $40.9 billion, aligning with its earlier forecast range of $40-42 billion.
In March last year, the company announced plans for a $100 billion U.S. investment, following a $65 billion commitment for three plants in Arizona. One of these Arizona facilities is currently operational.
U.S. Secretary of Commerce Howard Lutnick mentioned in a recent podcast that TSMC is expected to increase its investments in the United States.
Trade policies and tariff threats related to semiconductors have introduced uncertainty for the global chip industry, though this has not yet significantly impacted the profit growth driven by the AI boom.
($1 = 31.5920 Taiwan dollars)