TSMC Earnings Call: Confidence in the major trend of artificial intelligence is "strengthening," raising full-year capital expenditure to $40–42 billion.

TSMC announced its Q3 financial results on the 16th; demand for AI chips remains strong, TSMC's Q3 net profit hit a record high, exceeding expectations with 39% growth, and capital expenditure reached $9.7 billion.

In the subsequent earnings call, TSMC forecasted full-year capital expenditures of $40 billion to $42 billion, raising its previous estimate of $38 billion to $42 billion.

Meanwhile, TSMC said that sales in 2025 will grow by around the mid-level, and TSMC expects Q4 revenue of $32.2 billion to $33.4 billion, higher than the estimated $31.23 billion; Q4 gross margin is expected to be 59% to 61%, better than the forecasted 57%.

TSMC CEO C.C. Wei said:

AI demand remains strong, even stronger than we expected three months ago. Our confidence in the major trend of artificial intelligence is “strengthening”; AI demand will remain strong throughout 2025, and we are accelerating our production expansion in the United States.

In terms of technological progress, TSMC stated that the 2nm process is expected to achieve mass production in the latter part of this quarter, and the A16 chip is expected to reach mass production in the second half of next year.

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