TSMC has posted a sixth consecutive quarter of record earnings, with net profit rising 69% as AI orders drive demand for advanced chips and accelerate plans for new capacity.
TSMC has reported another quarter of exceptional growth, posting record net profit of NT$763.1bn in the three months to the end of September, a rise of 69% from a year earlier. Reuters said the result slightly exceeded analyst expectations and extended the chipmaker’s run of record earnings to a sixth consecutive quarter, underlining how demand linked to artificial intelligence continues to outpace the company’s production capacity.
Revenue for the quarter climbed 51% to NT$1.49tn, while the gross margin remained unusually high as the foundry benefited from the mix shift towards leading-edge manufacturing. The company said high-performance computing accounted for 68% of revenue, with smartphones contributing 21%, and chips made on 3nm processes representing 33% of wafer sales. Reuters also reported that advanced technologies in aggregate made up the bulk of wafer revenue, reflecting how customers are concentrating orders on the most sophisticated nodes.
Looking ahead, TSMC forecast fourth-quarter revenue of between $52.3bn and $54.3bn, well above the same period a year earlier, and said full-year 2026 sales should rise about 44% in dollar terms. Even so, chairman and chief executive C.C. Wei struck a cautious note about 2027, telling analysts that consumer and price-sensitive markets were being affected by higher component costs and wider macroeconomic uncertainty. He said the company was therefore being prudent in its planning.
The latest figures point to an expansion phase that is still being driven by AI demand rather than a broad-based improvement across end markets. Reuters reported that TSMC sees no sign of a slowdown in what it calls the AI mega trend, and the company is continuing to add capacity accordingly. The Information said TSMC plans another 3nm factory in Tainan, with production expected in the first half of 2028, while its second Arizona plant is due to begin mass production in the third quarter of 2027, ahead of schedule. The company kept its 2026 capital spending guidance at $60bn to $64bn, and chief financial officer Wendell Huang said spending from 2026 to 2028 would be significantly higher than in the previous three years.
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