TAIPEI, Jan 15 (Reuters) – TSMC, the world’s largest manufacturer of advanced artificial intelligence chips, is expected to post a 28% jump in fourth-quarter net profit to a record high on Thursday driven by ongoing strong demand for AI infrastructure.
Taiwan Semiconductor Manufacturing Co, the world’s top contract chipmaker and a key supplier to Nvidia and Apple, is forecast to report a net profit of T$479.1 billion ($15.15 billion) for the three months through December 31, according to an LSEG SmartEstimate compiled from 19 analysts.
SmartEstimates place greater weight on forecasts from analysts who are more consistently accurate.
TSMC, Asia’s most valuable listed company with a market capitalisation of around $1.4 trillion – more than twice that of South Korean rival Samsung Electronics – will also provide first-quarter and full-year guidance in an earnings call scheduled for 0600 GMT.
It last week reported a market-forecast-beating rise in fourth-quarter revenue of 20.45%. Any figure above T$452.3 billion would mark the company’s highest-ever quarterly net income and its eighth consecutive quarter of profit growth.
Research firm IDC expects TSMC’s revenue to grow between 25% and 30% in 2026 in U.S. dollar terms, up from its previous forecast range of 22%–26%, citing booming demand for AI server accelerators and significant contributions from the company’s next-generation 2-nanometre node.
TSMC is investing $165 billion to build chip factories in the U.S. state of Arizona, and U.S. Secretary of Commerce Howard Lutnick said in a podcast released last week the company was set to invest more in the country.
The U.S. administration is nearing a trade deal with Taiwan to reduce its tariff rate to 15% and wants chipmaker TSMC to commit to building at least five more facilities in Arizona, the New York Times reported on Monday.
TSMC, which is currently in its pre-earnings quiet period, declined to comment on whether it would invest more in the U.S. in addition to its announced commitments.
It remains unclear how much U.S. President Donald Trump’s tariffs will affect TSMC.
Taiwan’s exports to the United States are now subject to a 20% tariff, but that excludes chips.
TSMC’s Taipei-listed shares gained 44.2% last year, outperforming the 25.7% rise for the broader market, and are already up 10% so far this year.
($1 = 31.6270 Taiwan dollars)
(Reporting by Wen-Yee Lee; Editing by Ben Blanchard and Tomasz Janowski)
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