TSMC Raises Revenue Forecast Amid Surging AI Chip Demand

Taiwan Semiconductor Manufacturing Company Limited (TSMC) has updated its full-year revenue growth forecast to approximately 30% in US dollar terms, a significant increase from previous estimates. This revision is attributed to the robust demand for artificial intelligence chips.

Caution Ahead: Tariffs and Exchange Rate Fluctuations

Despite the optimistic revenue forecast, TSMC has expressed concerns for the upcoming fourth quarter. Potential impacts from tariffs and exchange rate fluctuations could pose challenges, as highlighted during the company's earnings conference.

Impressive Earnings and Future Projections

TSMC reported a remarkable 61% increase in net income, reaching $12.8 billion, surpassing expectations. Looking ahead, the company anticipates third-quarter revenue to be between $31.8 billion and $33 billion, with gross margins projected at 55.5% to 57.5%.

Market Reactions and Industry Concerns

The announcement comes in the wake of ASML Holding NV, a key chipmaking equipment supplier, adjusting its 2026 growth forecast downward, sparking market apprehensions.