TSMC, the world’s most important chipmaker, is expected to report a record-breaking profit for its third quarter, a clear sign of the massive and ongoing demand for the advanced chips that power artificial intelligence. However, the good news is tempered by a growing sense of uncertainty over potential new U.S. tariffs.
The Taiwanese giant, which is a key supplier to both Nvidia and Apple, is on track to post a net profit of around $13.65 billion, a 28% jump from last year. This would be the company’s highest-ever profit and its seventh straight quarter of growth. The news comes after TSMC already announced a 30% surge in its third-quarter revenue, easily beating market forecasts.
The AI revolution has been a massive windfall for TSMC. Its stock is up 36% so far this year, and its market value is now nearly three times that of its main rival, Samsung. But the future is not without its challenges. The Trump administration is pushing for more chip production to move to the U.S. While Taiwan has so far rejected a proposal to split production 50-50, the pressure is mounting.
For now, TSMC’s position looks solid. It’s already investing a massive $165 billion to build new factories in Arizona. But the ongoing trade tensions and the threat of new tariffs are a dark cloud on the horizon for the undisputed king of the chip world.
