Taiwan Semiconductor Manufacturing Co., the world’s third-largest chipmaker, reported a record third-quarter profit on Thursday, fueled by relentless global demand for AI chips.
In the release, TSMC said demand for AI chips remains strong, fueled by the growing adoption of agentic AI and open-source models. These technologies are expected to make AI more accessible and drive demand for advanced semiconductors.
The company posted a record net profit for the sixth consecutive quarter, up 68.7% from the prior year.
TSMC also raised its fourth-quarter revenue guidance to $52.3 billion–$54.3 billion, representing a 14% sequential increase and a 58% year-over-year jump at the midpoint.
TSMC Q3 Highlights:
- Revenue: 1.49 trillion new Taiwan dollars ($46.36 billion) vs. NT$1.47 trillion
- Net Income: NT$763.1 billion vs. NT$746.34 billion expected
Wendell Huang, Senior VP and Chief Financial Officer of TSMC told investors, “Our business in the third quarter was supported by strong demand for our leading-edge process technologies. Moving into fourth quarter 2026, we expect our business to be supported by continued strong demand for our leading-edge process technologies, including the steep ramp-up of our 2-nanometer technology.”
Moving forward, TSMC expects capital expenditure from 2026 to 2028 to be significantly higher than in the previous three years as it continues to increase investment to meet growing customer demand.
The company’ stock dropped 2% following the announcement.
By CEO NA Editorial Staff
