Taipei – In an impressive display of growth, Taiwan Semiconductor Manufacturing Co. (TSMC), the world's leading manufacturer of advanced semiconductor chips, is anticipated to report a staggering 40% increase in its third-quarter profit, driven largely by booming demand for artificial intelligence (AI) technology.

The latest forecast suggests that TSMC will announce a net profit of approximately T$298.2 billion (around $9.27 billion) for the quarter ending September 30, a significant leap from last year's profit of T$211 billion. Such a remarkable turnaround is reflective of the escalating need for semiconductor innovations, particularly as tech giants like Apple, Nvidia, AMD, Qualcomm, and MediaTek roll out new AI-driven products.

Analyst reactions have been overwhelmingly optimistic, with industry expert Li Fang-kuo, Chairman of President Capital Management, asserting that “TSMC's Q3 earnings will exceed expectations by a lot.” This sentiment is supported by a recent report indicating that TSMC’s revenue significantly outperformed market predictions, showcasing its pivotal role in the tech supply chain.

The company is set to disclose its updated outlook and capital expenditure plans during its quarterly earnings call, scheduled for Thursday at 0600 GMT. Notably, TSMC has committed an enormous $65 billion to establish three new production facilities in Arizona, USA, although the majority of manufacturing operations are expected to continue in Taiwan.

This proactive expansion comes as TSMC looks to capitalize on the resurgence of AI technologies, which have dramatically increased stock prices; TSMC's shares have surged by 77% this year, a stark contrast to the broader market's 28% rise.

In a landscape where TSMC faces minimal competition, the disparity with industry stalwart Intel is glaring. Once a titan in the semiconductor sector, Intel is currently grappling with significant challenges as it constructs its own contract manufacturing unit, which is struggling to rival TSMC’s dominance.

As the demand for AI chips continues to escalate, TSMC solidifies its position not only as a cornerstone of Taiwan's economy—often referred to as “the sacred mountain protecting the country”—but also as a vital player in the global tech arena, securing its status as an invaluable asset in the age of digital transformation.