TSMC's net profit in the third quarter is expected to decline by 30% compared with the same period last year.

CTOnews.com, Oct. 17 (Reuters)-TSMC will report third-quarter results on Thursday and its net profit is expected to fall 30% year-on-year, but analysts expect the company to grow strongly next year as the chip industry is coming out of the current downturn.

The drop in profits also reflects TSMC's strong performance in the same period last year, when the company was still driven by demand release after the outbreak.

According to data released by TSMC, revenue in the third quarter was about $17 billion (CTOnews.com Note: currently about 124.27 billion yuan), down 20% from a year earlier and roughly in the middle of the company's forecast.

Global demand for semiconductors began to weaken in the second half of last year, but analysts said smartphone and computer makers' inventories were running out and replenishment demand was expected to rise.

As a result, Thursday's focus will be on TSMC's expectations for the fourth quarter and the future.

The boom in artificial intelligence has also contributed to the rise in TSMC's shares, which have soared 23 per cent so far this year.

TSMC's net profit is expected to reach NT $195.9 billion (currently about 44.469 billion yuan) from July to September, with revenue growth of about 22% in 2024, according to LSEG SmartEstimate. LSEG SmartEstimate is an intelligent estimate based on the forecasts of 19 analysts, giving more weight to more accurate analysts.