Taiwan Semiconductor NYSE: TSM TWSE: 2330 układy scalone

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(Reuters) -Taiwan Semiconductor Manufacturing Co Ltd is pushing back on some of the conditions the United States has attached to chip-factory subsidies as it seeks up to $15 billion from the U.S. government, the Wall Street Journal reported on Wednesday.

TSMC, which in December more than tripled its planned investment at its new Arizona plant to $40 billion, is concerned about rules that could require it to share profits from the factories and provide detailed information about operations, WSJ reported, citing people familiar with the matter.

TSMC declined to comment when contacted by Reuters.

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SANTA CLARA, California (Reuters) - Taiwan Semiconductor Manufacturing Co on Wednesday said it will release new software this year to help customers working on advanced computer chips for cars take advantage of its newest technologies more quickly.

TSMC is the world's biggest contract manufacturer of semiconductors. Many of the automotive industry's biggest chip suppliers such as NXP (NASDAQ:NXPI) Semiconductor and STMircoelectronics NV tap TSMC to make their chips.

But automotive chips must meet a higher bar for ruggedness and longevity than the chips that go into consumer electronics. TSMC has special manufacturing processes for the automotive industry that typically arrive a couple years after similar processes for consumer chips.

In the past it has then taken automotive chip firms extra time to create chip designs for those specialized manufacturing lines. The result was that car chips could be years behind those in the latest smartphone.

At a conference in Silicon Valley on Wednesday, TSMC unveiled new software that will enable automotive chip designers to start work on their designs about two years sooner. That will enable those companies to use the automotive version of TSMC's N3 chipmaking technology - which is the current state of the art in consumer devices - as soon as the automotive-grade variant becomes available from TSMC in 2025.

“Historically, auto stayed far, far behind consumer,” Kevin Zhang, vice president of business development at TSMC, said during a press conference. “That is the past. This allows our auto customers to start their designs much earlier – as a matter of fact, two years earlier than before this.”

Zhang said that before pandemic and ensuing automotive semiconductor shortages, automakers often left important chip technology decisions to their suppliers. But now, those suppliers and the automakers are often in direct discussion with TSMC.

“They fully realize they need direct exposure to silicon technology selection,” Zhang said. “Over the last couple of years, I have personally met many of the major automotive CEOs. ...We work with them very closely upfront."

TSMC aims to get newest chip technology into cars faster

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TAIPEI (Reuters) - Taiwanese chipmaker TSMC said on Thursday that while war in Ukraine has impacted the company's costs, customers need not worry about the impact being passed on in price hikes.

"War happening in a far away place – the Ukraine war – has ripple effects that reach us," said Taiwan Semiconductor Manufacturing Co's CEO C.C. Wei, speaking at the company's annual technology showcase in the chipmaking hub of Hsinchu.

TSMC is the world leader in manufacturing advanced chips used in technology from smartphones to data centres.

Wei said the war and inflation have increased costs, with the company paying up to six to seven times the normal price for neon gas, critical for the lasers used to make chips.

Two Ukrainian suppliers, which produced about half the world's supply of semiconductor-grade neon, halted operations last year.

But Wei told the forum, attended by clients including Taiwan chip designer MediaTek, that TSMC is working hard to manage costs and customers need not to worry about the chipmaker raising prices.

While TSMC said last month that it expects growth in the global chip market this year, excluding memory chips, to decline in the mid-single digit percentage range year on year, the company's dominance in making advanced chips for high-end customers such as Apple (NASDAQ:AAPL) has shielded it from a broader industry downturn.

George Liu, senior director of business development at TSMC, said specialty chips present a "very big" opportunity, driven by electrification and automation trends in the auto industry.

Wei also pointed to artificial intelligence (AI) and 5G as key areas for business growth in an era of smart cars, smart homes, and smart cities.

"The only thing AI and 5G can't do is make our politicians smarter," Wei joked.

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(Reuters) -Big investment firms including Macquarie, Fidelity, Tiger Global and Coatue were among the largest buyers of U.S. listed shares of Taiwanese contract chipmaker TSMC in the first quarter, while Warren Buffett's Berkshire Hathaway (NYSE:BRKa) sold its remaining stake in the company, according to regulatory filings.

Berkshire said in February it had reduced its position in Taiwan Semiconductor Manufacturing Co Ltd. On Monday, the company said it shed its remaining stake.

During Berkshire's annual meeting earlier this month, Buffett said TSMC is a "marvelous company," but that he felt more comfortable with investing in Japan than Taiwan, reflecting the growing tensions between the United States and China.

The so-called 13-F filings, which disclose investment firms' portfolios, are closely watched for trends even though the data is released with a delay and can be dated.

Macquarie added roughly 78 million new American Depositary Shares (ADRs) of TSMC to an existing position, and ended March with $7.3 billion in the company. Fidelity bought 14.1 million new shares, increasing its bet on the company to nearly $4 billion.

Coatue Management, founded by Philippe Laffont, built a new position in the chipmaker as it bought 5.9 million shares, worth $548.9 million. Tiger Global Management acquired $147.8 million in shares.

U.S.-listed shares of TSMC have gained nearly 14.5% this year.

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TSMC to Build 2nd Japan Plant in Kumamoto
Taipei, June 6 (Jiji Press)--Taiwan Semiconductor Manufacturing Co. plans to build its second Japanese plant in the western prefecture of Kumamoto, TSMC Chairman Mark Liu said Tuesday.
The contract chipmaker's first plant in Japan is currently under construction in the Kumamoto town of Kikuyo in a joint project with Japanese companies Sony Group Corp. and Denso Corp.

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TAIPEI (Reuters) - Taiwanese chipmaker TSMC is expected to report a 27% fall in second-quarter net profit on Thursday, as global economic woes dent demand for semiconductors, though analysts say business performance is likely to improve in the current quarter.

Taiwan Semiconductor Manufacturing Co Ltd (TSMC), the world's largest contract chipmaker and a major Apple (NASDAQ:AAPL) and Nvidia (NASDAQ:NVDA) supplier, is likely to report net profit for the April-June period of T$172.53 billion ($5.58 billion), down from T$237.0 billion a year earlier, according to the average of 21 analysts polled by Reuters.

The forecast decline in profit partly reflects a robust performance in the previous year, when the company was still riding high on pent-up post-pandemic demand.

Analysts at Taiwan's Fubon Investment said they expected the second quarter to be the bottom of the current downcycle but that while the situation should improve in the third quarter, it would be weaker than normal given continued inventory build ups that are still being worked through.

One senior Taiwan fund manger told Reuters that third quarter profit would bounce back given expectations for AI demand and launches of new iPhones ahead of the year-end holiday shopping season.

"Taiwan has not really benefited from electric vehicles, since the market is in China and most EV suppliers are in China. But artificial intelligence (AI) is a different story," he said, requesting anonymity citing company policy. "Taiwan will benefit most from AI because the entire AI supply chain can be found here."

The second quarter is traditionally a slow period for sales for the tech industry with demand usually picking up in the third quarter and towards the year-end shopping season.

TSMC, Asia's most valuable listed company, posted a surprise rise in net profit for the quarter ended March, up 2% from a year earlier. But that was still the smallest quarterly growth since mid-2019 as global economic woes hurt demand for chips.

Last month, the company said quickly rising demand for AI applications was driving a lot of orders and that it expected a better performance in the second half than the first.

The bright outlook for AI applications has in part driven up TSMC's Taipei-listed stock by almost 30% so far this year, outperforming the broader market, which is up around 22%.

The company will provide guidance for the third quarter and update previous forecasts on its earnings call at 0600 GMT on Thursday.

TSMC's second quarter revenue came in at T$480.8 billion($15.53 billion), according to Reuters calculations, in the middle of an April forecast range of $15.2 billion to $16 billion, compared to $18.16 billion for the year-ago period.

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Taiwanese chipmaker TSMC (NYSE:TSM) posted a 23.3% fall in second-quarter net profit as global economic woes dented demand for chips used in various applications.

Latest Release
Jul 20, 2023

EPS / Forecast
1.14 / 1.07

Revenue / Forecast
15.68B / 15.44B

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TSMC shares fall 3.3% after it cuts revenue outlook, delays production

TAIPEI (Reuters) -Shares of Taiwan's TSMC slumped more than 3% on Friday after the world's largest contract chipmaker flagged a 10% drop in 2023 sales and said production due to start next year at its first plant in Arizona would be delayed.

On Thursday, TSMC reported a 23.3% fall in second-quarter net profit - its first on-year drop in quarterly profit since the second quarter of 2019 - as global economic woes take a toll on demand for chips used in everything from cars to cellphones.

Taiwan Semiconductor Manufacturing Co Ltd's shares closed down 3.28% on Friday, versus a 0.78% loss for the broader index.

"TSMC's Q2 2023 earnings sent mixed signals. While the company's declining revenue and profit were disappointing, its long-term growth prospects remain encouraging," Brady Wang, associate director at Counterpoint Research, said.

"Despite facing macroeconomic headwinds, TSMC's long-term outlook remains robust, supported by megatrends like 5G and high-performance computing (HPC)."

As TSMC steps up its global expansion, the company said production at its first plant in Arizona will be delayed until 2025 due to a shortage of specialist workers.

The company's earnings of T$181.8 billion ($5.85 billion) for the quarter ended June still beat forecasts and analysts said the revision for full-year revenues was expected.

"The revenue guidance downward revision could be the last cut for TSMC as the inventory correction cycle is likely coming to an end in 4Q23, in our view, and we see TSMC well positioned for a strong growth outlook in 2024," Goldman Sachs (NYSE:GS) said in a research note.

"We believe the U.S. expansion delay is also well expected by investors."

Other analysts were also upbeat on TSMC, thanks in part to strong demand for artificial intelligence (AI), which currently contributes around 6% of revenue.

"We expect a solid 2024 onward outlook on the back of its leading position in AI chip manufacturing," Citi Research analysts said in a note.

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TSMC leads in advanced chip packaging wars, LexisNexis patent data says

(Reuters) - Taiwanese chipmaker TSMC has developed the most expansive arsenal of patents surrounding advanced chip packaging, followed by Samsung Electronics (OTC:SSNLF) and then Intel (NASDAQ:INTC), according to data from LexisNexis.

Advanced chip packaging is a crucial technology that squeezes the most horsepower from the latest chip designs, and is crucial to chip contract manufacturers vying for business.

The data from LexisNexis, released last month, indicates that TSMC and Samsung (KS:005930) have steadily invested in advanced packaging technology for years, as Intel did not keep pace with its own filings.

Taiwan Semiconductor Manufacturing (TSMC) has a cache of 2,946 advanced packaging patents and also has the highest quality, a measure that includes how many times they are cited by other companies, according to data and analytics company LexisNexis.

Samsung Electronics, which ranks second in terms of quantity and quality of the patents, has 2,404, according to the LexisNexis data.

Ranked third, Intel has 1,434 patents in its advanced packaging portfolio.

“They seem to be the ones that pulled the field forward, and set the technology standard,” said LexisNexis PatentSight Managing Director Marco Richter in an interview, referring to TSMC, Samsung and Intel.

Intel, Samsung and TSMC have been steadily investing in advanced packaging technology since around 2015, when all three began to add to their patent portfolios, according to the data. The three businesses are the only companies in the world that have or plan to deploy the technology to fabricate the most complex, advanced chips.

Advanced packaging is crucial for improving semiconductor designs as it becomes more difficult to pack more transistors onto a single piece of silicon. Packaging (NYSE:PKG) technology enabled the industry to stitch together several chips called "chiplets" - either stacked or adjacent to one another - within the same container.

Advanced Micro Devices (NASDAQ:AMD)' chiplet technology helped its server chips gain an advantage over Intel's.

Samsung has been investing in advanced packaging for years but the South Korean chip giant established a dedicated team to pursue advanced packaging in December 2022, Moonsoo Kang, the unit's chief, said in a statement.

Intel disputed the idea that the size of TSMC's patent portfolio indicated that it had developed more advanced technology. The company's patents protect its intellectual property rights, and its patent investments are carefully selected, Intel's vice president of intellectual property legal group, Benjamin Ostapuk, said in a statement.

TSMC declined to comment.

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Fabryka procesorów powstanie w Europie. Tuż przy granicy z Polską

Stany Zjednoczone i Europa chcą uniezależnić się do rynku azjatyckiego pod wieloma względami, w tym pod kątem dostaw procesorów. Obecnie ich większość produkowana jest w Chinach i na Tajwanie, ale trwają działania, by to się zmieniło.

Unia Europejska chce znacząco zwiększyć udział Europy w światowym rynku półprzewodników. Przyjęty niedawno akt o chipach zakłada, że do 2030 r. udział Europy w tym rynku ma zostać podwojony - z ok. 10 proc. do co najmniej 20 proc. w 2030 r. Będzie to się wiązać z dużymi inwestycjami. Zgodnie z założeniami osiągnięcie tego celu może kosztować 43 miliardy euro.

Jak podaje agencja Reuters, jeden z gigantów branży półprzewodników, tajwańska firma TSMC, wyda 3,5 miliarda euro na budowę pierwszej fabryki w Europie. Ma ona stanąć blisko polskiej granicy, bo w Dreźnie. Jak czytamy na stronie TSMC, firma ta ma być głównym udziałowcem w fabryce, mając przy tym 70 proc. udziałów. Po 10 proc. udziałów będą miały firmy Bosch, Infineon i NXP.

TSMC podaje, że łączna wartość inwestycji przekroczy 10 mld euro. Na tę kwotę mają jednak składać się różne formy pomocy ze strony Niemiec i Unii Europejskiej. TSMC pozostanie operatorem fabryki, w której zatrudnionych ma zostać ok. 2 tys. osób, co może być dobrą informacją także dla Polaków, szukających zatrudnienia za zachodnią granicą.

Europejska fabryka TSMC ma mieć miesięczną zdolność produkcyjną na poziomie 40 tys. 300 mm (12-calowych) płytek na płaskiej matrycy CMOS 28/22 nanometrów TSMC i technologii procesowej FinFET 16/12. Budowa fabryki ma ruszyć w drugiej połowie 2024 r., a produkcja ma ruszyć do końca 2027 r.

- Inwestycja w Dreźnie świadczy o zaangażowaniu TSMC w zaspakajanie strategicznych potrzeb naszych klientów w zakresie zdolności produkcyjnych i technologii. Jesteśmy podekscytowani możliwością pogłębienia naszej wieloletniej współpracy z firmami Bosch, Infineon i NXP - mówi dr CC Wei, dyrektor generalny TSMC.

- Europa jest bardzo obiecującym miejscem dla innowacji w dziedzinie półprzewodników, szczególnie w branży automotive i przemyśle, i nie możemy się doczekać, by wprowadzić te innowacje w życie w naszej zaawansowanej technologii krzemowej w Europie - dodaje.

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TSMC to decide this week whether to invest in Arm IPO

TAIPEI (Reuters) -TSMC, the world's largest contract chipmaker, will decide this week whether to invest in chip designer Arm Holdings' blockbuster initial public offering (IPO), Chairman Mark Liu said on Wednesday.

Speaking on the sidelines of the SEMICON Taiwan summit, Liu said his company was still evaluating the matter and, when pressed on when a decision may come, he added "this week".

"Arm is an important element of our ecosystem, our technology and our customers' ecosystem. We want it to be successful, we want it to be healthy. That's the bottom line," Liu said.

On Tuesday, SoftBank (TYO:9984) Group's Arm Holdings launched the roadshow for its IPO as the chip designer tries to convince investors it is worth as much as $52 billion in this year's biggest share sale.

Arm has already signed up many of its major clients as cornerstone investors in its IPO, including Apple (NASDAQ:AAPL), Nvidia (NASDAQ:NVDA), Alphabet (NASDAQ:GOOGL), Advanced Micro Devices (NASDAQ:AMD), Intel (NASDAQ:INTC) and Samsung Electronics (KS:005930).

Speaking about Taiwan Semiconductor Manufacturing Co Ltd's (TSMC) plant in the U.S. state of Arizona, where it is investing $40 billion in a massive project, Liu said he had no concern over its ability to be successful.

"I just came from Arizona last month. Any project of that new fertile ground will have some learning curve. In the past five months the improvement has been tremendous. I’m sure it will be a very successful project," he said.

In July, TSMC said production due to start next year at its first chip fabrication facility, or fab, in Arizona would be delayed until 2025 due a shortage of specialist workers.

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The Taiwan Semiconductor Manufacturing Company (TSMC), one of the world's leading chip manufacturers, is reportedly considering expanding its operations in Japan due to ongoing staffing issues at its Arizona facility. The company is currently constructing an $8.6 billion chipmaking hub on the island of Kyushu, which is expected to begin production of mature-technology chips in 2024. Industry insiders suggest that TSMC may further increase capacity and add a second fabrication plant (fab) in Japan.

The Arizona plant, which was initially slated to commence production in 2024, has faced a delay until 2025 due to a shortage of skilled workers. This has led TSMC to consider alternatives for its manufacturing diversification strategy. Japan, with its network of chip equipment and materials suppliers, easy-to-deal-with government, and work culture similar to Taiwan's, has emerged as an attractive option for the company.

TSMC's confidence in Japan as a manufacturing base is growing despite the fact that costs in Japan are anticipated to be higher than in Taiwan. However, these costs are still considered favorable when compared to the US, where investment expenses have proven to be 50% higher than initial estimates. An expansion by TSMC would bolster Japan's efforts to regain its status as a chip manufacturing powerhouse and support its automotive and electronics industries.

On Monday, TSMC received approval from the Taiwanese government for a $4.5 billion investment in its Arizona facility. The funds will be used for working capital expenses through its subsidiary, TSMC Arizona. This approval follows a board meeting held by TSMC in August during which the capital injection was approved.

Despite the challenges at the Arizona site, TSMC continues its efforts to install advanced chip manufacturing machines at the plant. The facility is designed to manufacture chips on TSMC's N4 semiconductor technology process node, part of the company's 5nm semiconductor family. TSMC also announced last December plans to add a second factory to the Arizona site, which would enable it to build 3-nanometer chips by 2026.

The US, Japan, and Germany have all offered TSMC billions of dollars in subsidies to support the construction of new fabs. However, the company's recent experiences and future plans suggest that Japan may be gaining an edge over its rivals as a favored location for TSMC's overseas manufacturing operations.

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Fabryka Taiwan Semiconductor Manufacturing Co. (TSMC) w Arizonie o wartości 40 miliardów dolarów, kluczowa część amerykańskiej ustawy CHIPS, zmaga się z poważnymi wyzwaniami, w tym przekroczeniem kosztów i opóźnionym harmonogramem produkcji, który obecnie rozciąga się na 2025 rok. Pierwotne cele projektu, które obejmowały wzmocnienie amerykańskiego zatrudnienia, są obecnie pod kontrolą, ponieważ raporty ujawniają, że prawie połowa siły roboczej fabryki pochodzi z Tajwanu.

Przewodniczący Mark Liu opisał przedsięwzięcie w Arizonie jako "pierwszą próbę" zagranicznej ekspansji TSMC. Zakład, zaprojektowany tak, aby odzwierciedlał tajwańską Tainan Fab 18, ma na celu produkcję 60 000 wafli (płyt)* miesięcznie. Koszty budowy okazały się znacznie wyższe niż przewidywano.

*Uformowanie jednego „wafla” o rozmiarach talerza to tysiące czynności trwających do dwóch miesięcy. Płyty krzemowe są następnie cięte na czipy, na których drukowane lub wytrawiane są układy tranzystorów.
https://forsal.pl/biznes/przemysl/artyk ... iznes.html

Według danych InvestingPro, TSMC ma kapitalizację rynkową w wysokości 425,12 mld USD i wskaźnik P/E na poziomie 14,21, co wskazuje, że spółka jest notowana po niskiej cenie w stosunku do swoich zysków. Jest to również wspierane przez wskazówkę InvestingPro, która stwierdza, że TSMC jest notowany przy niskim wskaźniku P/E w stosunku do krótkoterminowego wzrostu zysków.

Skład siły roboczej w zakładzie również wzbudził zdziwienie. Wśród pracowników jest wyszkolony w USA inżynier Mino Morgese z Tajwanu. Wysoki odsetek tajwańskich pracowników wywołał sceptycyzm wobec zaangażowania TSMC w tworzenie miejsc pracy dla amerykańskich pracowników, dodając kolejną warstwę złożoności do tego projektu o wysokiej stawce.

Dane InvestingPro pokazują, że firma odnotowała wzrost przychodów o 18,64% i zysk brutto w wysokości 41925,03 mln USD, co wskazuje na dobre wyniki finansowe. Wskazówka InvestingPro dodatkowo podkreśla, że TSMC działa z wysokim zwrotem z aktywów, co znajduje również odzwierciedlenie w zwrocie spółki z aktywów na poziomie 20,34%.

Pozostają również pytania o jakość chipów, które będą produkowane w tym nowym zakładzie. Wątpliwości te, w połączeniu z przekroczeniem kosztów i opóźnieniami w harmonogramie produkcji, rzuciły cień na tę integralną część amerykańskiej ustawy CHIPS. Jednak TSMC pozostaje znaczącym graczem w branży półprzewodników i sprzętu półprzewodnikowego, co podkreślono w wskazówce InvestingPro.

Taiwan Semiconductor Manufacturing Co.'s (TSMC) $40 billion Arizona plant, a crucial part of the US CHIPS Act, is grappling with significant challenges, including cost overruns and a delayed production timeline that now stretches into 2025. The project's original goals, which included bolstering American employment, are now under scrutiny as reports reveal that nearly half of the plant's workforce originates from Taiwan.

Chair Mark Liu has described the Arizona venture as a "first trial" for TSMC's overseas expansion. The facility, designed to mirror Taiwan's Tainan Fab 18, aims to produce 60,000 wafers per month. The construction costs have turned out to be significantly higher than anticipated.

According to InvestingPro data, TSMC has a market capitalization of $425.12 billion and a P/E ratio of 14.21, indicating that the company is trading at a low price relative to its earnings. This is also supported by an InvestingPro tip that states TSMC is trading at a low P/E ratio relative to near-term earnings growth.

The workforce composition at the plant has also raised eyebrows. Among the staff members is U.S.-trained engineer Mino Morgese from Taiwan. The high proportion of Taiwanese employees has ignited skepticism about TSMC's commitment to creating jobs for US workers, adding another layer of complexity to this high-stakes project.

InvestingPro data reveals that the company has experienced a revenue growth of 18.64% and a gross profit of $41925.03 million, indicating a strong financial performance. An InvestingPro tip further underscores that TSMC operates with a high return on assets, which is also reflected in the company's return on assets standing at 20.34%.

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TAIPEI (Reuters) -Taiwan's TSMC said on Friday it expects to receive permission from the United States to supply its China plant with U.S. chipmaking tools indefinitely, in an easing of Washington's restrictions on foreign chipmakers operating in China.

The U.S. Department of Commerce's Bureau of Industry and Security (BIS) has advised TSMC to apply for the "validated end-user" (VEU) programme, which would allow the chipmaker to receive exports without separate approvals, the company said in a statement to Reuters.

"We expect to receive a permanent authorization through the VEU process," TSMC said, noting that it did not previously need to apply for VEU status.

Taiwan Economy Minister Wang Mei-hua said earlier on Friday that TSMC has received the waiver from the United States to supply U.S. equipment to the company's factory in China.

Last October, the Biden administration published a sweeping set of export controls, including a measure to cut off China from certain semiconductor chips made anywhere in the world with U.S. tools, vastly expanding the reach of a bid to slow Beijing's technological and military advances.

South Korea's government said this week that Samsung Electronics (KS:005930) and SK Hynix will be allowed to supply U.S. chip equipment to their China factories indefinitely without separate U.S. approvals.

TSMC, the world's largest contract chipmaker, said last year it had been granted a one-year authorisation by the United States that covered its factory in Nanjing, China, that makes less-advanced 28 nanometre chips.

The company, a major Apple Inc (NASDAQ:AAPL) supplier, also said in the statement that it has received U.S. authorisation to continue operating in Nanjing while it applies for VEU status.

However, the United States is continuing efforts to cut China off from top AI technology and plug gaps in export controls.

Reuters exclusively reported on Thursday that the Biden administration is considering closing a loophole that gives Chinese companies access to American artificial intelligence (AI) chips through units located overseas.

The United States last year shook relations with Beijing when it unveiled new restrictions on shipments of AI chips and chipmaking tools to China, seeking to thwart its military advances.

TSMC's Taipei-listed shares closed up 0.6% on Friday, outperforming the broader market which dropped 0.3%.

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TSMC third-quarter profit to slide 30%, focus on how much growth to come

TAIPEI (Reuters) - Taiwan Semiconductor Manufacturing Co Ltd is expected to report a 30% slump in third-quarter profit on Thursday but analysts predict robust growth next year as the chip industry emerges from its current downturn.

The likely decline in profit also reflects a strong performance last year, when the company was still riding high on pent-up post-pandemic demand.

The world's largest contract chipmaker is set to report net profit of T$195.9 billion ($6 billion) for July-September - its second straight quarter of profit decline, according to an LSEG SmartEstimate drawn from 19 analysts. SmartEstimates give greater weighting to forecasts from analysts who are more consistently accurate.

Revenue for the quarter came in at around $17 billion, according to TSMC figures, down 20% from a year earlier and roughly the middle of the company's forecast range.

Global demand for semiconductors began to weaken in the second half of last year, but analysts say inventories at smartphone and computer makers are running down and restocking demand is expected to pick up.

Given that, much of Thursday's focus will be on TSMC's outlook for the fourth quarter and beyond.

Morgan Stanley analysts have forecast 10% revenue growth for the fourth quarter but also said in a research note that "guidance may surprise to the upside," citing strong demand for high-end chips used in artificial intelligence as one factor.

The AI boom has helped drive up the price of shares in Asia's most valuable company, with TSMC's Taipei-listed stock having surged 23% so far this year.

An LSEG SmartEstimate puts TSMC's 2024 revenue growth at around 22%.

Sources have said, however, that TSMC has been nervous about customer demand and told its major suppliers to delay the delivery of high-end chip-making equipment, although they added that suppliers expect the delay to be short-term.

Some analysts are also reining in their optimism somewhat.

Fubon Securities expects a slow start to next year for TSMC, with 10% growth in the first quarter, predicting order cancellations towards the year end and mild restocking demand. In particular, it is concerned that Apple (NASDAQ:AAPL), a major customer, may revise down its orders.

"We think the market consensus is still too bullish," it said in a research note.

The company is due to report at 0600 GMT on Thursday.