TSMC has reported a 69 per cent jump in quarterly profit, as customers’ appetite for advanced chips keeps its factories busy.
The world’s largest contract chipmaker earned approximately $23.59 billion in the third quarter, beating analysts’ forecasts and delivering its sixth consecutive record quarterly profit.
Customers include Nvidia and the Fruity Cargo Cult Apple, putting TSMC at the manufacturing heart of some exceptionally expensive shopping lists.
Third-quarter revenue reached $46.72 billion, up 41.2 per cent in US dollar terms from the same period last year. Sales rose 16.2 per cent from the previous quarter.
Revenue growth in Taiwan dollars reached 50.9 per cent, showing how exchange rates can move the headline without producing another wafer.
Net income rose eight per cent from the second quarter, while diluted earnings came to $4.60 per American depositary receipt.
Gross margin reached 66.4 per cent, with operating margin at 58.7 per cent and net profit margin at 51.1 per cent. Keeping roughly half the revenue as profit certainly takes some sting out of running expensive factories.
Advanced manufacturing processes supplied most of the wafer revenue, with 7nm and below accounting for 79 per cent.
The 3nm process accounted for 33 per cent of wafer revenue, followed by 5nm at 28 per cent. The newer 2nm technology contributed eight per cent, while 7nm supplied another 10 per cent.
TSMC expects fourth-quarter revenue between $52.3 billion and $54.3 billion, compared with $33.73 billion a year earlier. It maintained its 2026 capital spending forecast at between $60 billion and $64 billion.
