TSMC's third-quarter profit rises 68.7% to NT$763.06bn, and it guides to US$52.3bn–54.3bn of revenue next quarter
Leading-edge chips carried the quarter. Its chief executive says the gap between demand and supply is still large, but Investing.com reports the US-listed shares closed 3.4% lower and slipped after hours.
TSMC reported its third-quarter results from Hsinchu on 15 October. Revenue was NT$1,494.24bn, or US$46.72bn, up 50.9% on a year earlier and 17.6% on the second quarter. Net income was NT$763.06bn, up 68.7%, and diluted earnings were NT$29.43 a share, or US$4.60 per ADR. Gross margin was 66.4%, operating margin 58.7% and net margin 51.1%.
The mix shows where AI demand sits. 3-nanometre chips made up 33% of wafer revenue, 5-nanometre 28%, 7-nanometre 10% and the new 2-nanometre 8%; together, 7nm and below were 79%. For the fourth quarter TSMC guides to revenue of US$52.3bn–54.3bn at an exchange rate of 31.8 New Taiwan dollars to the US dollar, a gross margin of 65%–67% and an operating margin of 56.5%–58.5%.
“Our business in the third quarter was supported by strong demand for our leading-edge process technologies,” said Wendell Huang, the chief financial officer, in the release. On the analyst call, according to Investing.com's transcript, which is marked as AI-generated and editor-reviewed, Huang reiterated a 2026 capital budget of between $60 billion and $64 billion and said spending from 2026 to 2028 is expected to be significantly higher than the past three years. Chief executive C.C. Wei said: “The gap between demand and supply are still quite big.” He also said annual capacity for the N2 family should more than double in 2027.
Investing.com reports the US shares closed the regular session at $430, down 3.4%, and slipped further after hours. The monthly revenue figures the Switchboard ran on 9 October are now confirmed for the full quarter, with profit and guidance added.
- Confirmed Q3 net income NT$763.06bn, up 68.7%; revenue US$46.72bn; Q4 guidance US$52.3bn–54.3bn. TSMC release
- Claimed TSMC expects 2026–28 capital spending to be significantly higher than the past three years, and N2 capacity to more than double in 2027. TSMC earnings call, Investing.com transcript
- Reported The ADR closed at $430, down 3.4%, according to Investing.com. Investing.com
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