Contract chipmaker Taiwan Semiconductor Manufacturing Company (TSMC) boosted its revenue growth forecast for the full year to 30 per cent after recording a 54.2 per cent year-on-year increase in net profit in Q3.

The company is a major chip supplier to Nvidia and Apple and expects Q4 revenue to grow by between 33.2 per cent and 37.2 per cent, $26.1 billion to $26.9 billion.

CFO Wendell Huang stated its Q3 business was supported by strong smartphone and AI-related demand, forecasting continued growth in the current quarter.

Last week, it reported sales grew 39 per cent to TWD759.7 billion ($23.6 billion), a record driven by demand for chips powering AI applications.

Net profit hit TWD325.3 billion, up from TWD211 billion.

In January it targeted annual sales growth of 20 per cent to 25 per cent.

Shipments of 3nm chips accounted for 20 per cent of total wafer revenue in Q3, 5nm 32 per cent and 7nm 17 per cent.

In August TSMC set an annual capex budget at $29.6 billion.