TSMC Posts Record Q3 Profit of $24 Billion, Sixth Straight Quarter of Record Earnings

Taiwan Semiconductor Manufacturing Company reported a record net profit of approximately $24 billion for the third quarter of 2026, marking its sixth consecutive quarter of record-breaking profitability.

The company's net income of NT$763.1 billion represented a 68.7 percent increase compared to the same period in 2025. Revenue for the quarter reached $46.72 billion. The operating margin hit 58.7 percent, exceeding the company's own guidance range of 56 to 58 percent.

High-performance computing, which includes chips used in AI data centers, accounted for 68 percent of total wafer revenue. Smartphones made up 21 percent. Advanced technology nodes of 7 nanometers and smaller comprised 79 percent of total wafer revenue, with 3-nanometer chips alone accounting for 33 percent.

TSMC provided guidance for the fourth quarter of 2026, projecting revenue between $52.3 billion and $54.3 billion. The company said its capital expenditures for 2026 through 2028 are expected to be significantly higher than the previous three-year period, reflecting confidence in long-term AI-driven demand.

The company raised its 2026 capital expenditure forecast to between $60 billion and $64 billion in July 2026. Demand for its advanced technologies continues to outpace supply capacity.

TSMC also confirmed that construction of its second fabrication facility in Arizona is complete and equipment installation is underway. Mass production at the Arizona plant is now expected to begin in the third quarter of 2027, ahead of previous schedules.

The results reflect the continued strength of AI chip demand, with companies including Nvidia, Apple, and AMD relying on TSMC's advanced manufacturing processes. Analysts expect the company's dominance in advanced chip production to continue through the end of the decade.