Taiwanese chipmaker TSMC sees nearly 40% jump in its net profit thanks to the AI boom

Core Insights - TSMC's net profit increased nearly 40% in the last quarter, driven by the rise in artificial intelligence usage, reaching a record 452.3 billion new Taiwan dollars ($15 billion) [1] - The company's revenue rose 30% year-on-year in the last quarter, exceeding analysts' expectations [1] Company Developments - TSMC is constructing chip fabrication plants in the U.S. and Japan to mitigate risks from China-U.S. trade tensions [2] - The company is a key supplier for major firms like Apple and Nvidia, indicating strong demand for its products [2] - TSMC has committed $100 billion in U.S. investments, including new factories in Arizona, in addition to a previous pledge of $65 billion [3] Market Outlook - Analysts from Morningstar noted that demand for TSMC's products remains strong, suggesting resilience against potential tariffs on shipments to U.S. customers [2] - U.S. Commerce Secretary proposed a 50-50 division of chip production between Taiwan and the U.S., which Taiwan has rejected [2]