TSMC posts sixth straight record quarterly profit as AI chip demand surges
publishers 17articles 18first reported 15 Oct, 00:15 UTCdeveloping since 15 Oct · 7 editions
Taiwan Semiconductor Manufacturing Co. reported a sixth consecutive record quarterly profit on Thursday, driven by strong global demand for advanced chips used in artificial intelligence systems.
Net profit for the third quarter rose 68.7% from a year earlier to NT$763.1 billion ($23.6 billion), exceeding analyst estimates and the previous quarter’s record of NT$706.6 billion. Revenue climbed 50.9% to about NT$1.5 trillion, while operating margin reached 58.7%, above the upper end of the company’s guidance.
High-performance computing generated 68% of quarterly revenue, compared with 21% from smartphones. Three-nanometer chips accounted for 33% of revenue, the largest share among TSMC’s manufacturing technologies. Free cash flow increased to NT$476.56 billion from NT$139.38 billion a year earlier.
Chief Executive C.C. Wei said demand for advanced chips remained “extremely robust,” including a rapid increase in demand for 2-nanometer technology. Competition for TSMC’s manufacturing capacity is intense as Nvidia, AMD and Broadcom seek chips for AI systems, while companies including Apple, Google, Amazon, Microsoft, Meta and OpenAI develop custom processors.
TSMC expects fourth-quarter revenue to rise 58% from a year earlier. Wei said the company would remain prudent in planning for 2027 because of rising component prices and economic uncertainty.
The company is also evaluating further U.S. expansion beyond its planned Arizona investment. Wei said TSMC had sent a team to assess potential sites in Texas but that discussions were continuing.
HOW THIS STORY WAS MADE
Written from 7 articles, 3 with the publisher's own text; 6 independent newsrooms once syndicated copies count as one; this version written 12 h after the record first saw the story; the editor kept it as written.
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- Source articles
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- Given to the writer
- 7, 3 with the article's own text
- Independent newsrooms
- 6
- This version written
- 12 h after the record first saw the story
- Second model (editor)
- kept as written
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