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TAIPEI, Jan 16 (Reuters) - Taiwan Semiconductor Manufacturing Co., the leading global manufacturer of advanced chips for artificial intelligence applications, is anticipated to announce a 58% increase in fourth-quarter profit on Thursday due to high demand.

As the world's largest contract chipmaker, with clients such as Apple and Nvidia, TSMC has profited from the trend towards AI. However, it faces challenges from U.S. technology restrictions on China and uncertainties surrounding President-elect Donald Trump's administration, which has threatened significant import tariffs.

Recently, the U.S. announced further restrictions on technology exports, which could impact TSMC. Nevertheless, Taiwan and other close U.S. allies will retain unrestricted access to U.S. AI technology.

TSMC is projected to disclose a net profit of T$377.95 billion ($11.44 billion) for the quarter ending Dec. 31, as per a LSEG SmartEstimate based on 22 analysts. This estimate contrasts with the T$238.7 billion profit in the fourth quarter of 2023.

In a recent update, TSMC reported robust performance in Taiwan dollars, surpassing market forecasts. The company will present its revenue outlook in U.S. dollars during its quarterly earnings call at 0600 GMT on Thursday.

Investing billions in new overseas factories, including $65 billion in three facilities in Arizona, TSMC intends to keep most manufacturing operations in Taiwan.

During the upcoming earnings call, TSMC will provide updates on the current quarter and the full year, along with planned capital expenditures aimed at expanding production.

In its previous earnings call in October, TSMC hinted at higher capital expenditure in 2025 compared to the previous year, although specifics were not disclosed. The company also forecasted capital expenditure in 2024 to slightly exceed $30 billion.

The flourishing AI sector has driven up shares of Asia's most valuable firm, with TSMC's Taipei-listed stock surging by 81% last year, outpacing the broader market's 28.5% gain.

($1 = 33.0390 Taiwan dollars)