Core Viewpoint - TSMC, the world's largest semiconductor foundry, reported that its AI-related business sales exceeded expectations, driven by the growth of Generative AI (GenAI) [1][3]. Financial Performance - For the third quarter ending in September, TSMC reported revenue of $33.1 billion, a year-over-year increase of 40.8% and a quarter-over-quarter increase of 10.1% [3]. - Net profit for the quarter reached $15.1 billion, with a quarter-over-quarter growth of 50.2% and an 18% increase from the second quarter [3]. Business Growth Drivers - TSMC's growth is attributed to two main factors: increased functionality on wafers allowing for higher fees and a recovery in wafer production following a downturn during the pandemic [5]. - The company achieved a record production of 4.085 million good wafers, with an average revenue per wafer of $8,102, a 59.2% increase from September 2022 [5]. Chip Sales Breakdown - Sales of 5nm chips grew by 62.8% to $12.25 billion, accounting for 37% of total chip revenue, while 3nm chip revenue reached $7.61 billion, a 61.9% increase, making up 23% of sales [7]. - AI inference and training chips contributed 6% to TSMC's revenue, with high-performance computing (HPC) sales reaching $18.87 billion, a 57.4% year-over-year increase [9]. Future Projections - TSMC forecasts a compound annual growth rate (CAGR) of approximately 40% for revenue driven by AI accelerators from 2024 to 2029 [9][11]. - The company estimates AI-related chip sales could reach $8.55 billion by 2029, growing at a CAGR of 45% [11]. Expansion Plans - TSMC is accelerating capacity expansion in Arizona, with plans for a second large site to support production of 2nm or more advanced processes [15]. - The company is also investing in advanced packaging facilities in the U.S. to meet local demand, collaborating with a major outsourcing partner [19].