TSMC Posts Record Q3 Revenue Amid AI Chip Boom
Key Summary
Taiwan Semiconductor Manufacturing Company (TSMC) has reported a 41.2% year-over-year increase in Q3 2026 revenue to $46.72 billion, driven by growing demand for custom AI chips. The company's revenue growth reflects the increasing adoption of AI technology across various industries, with TSMC being a leading player in the design and manufacturing of AI chips.
Revenue Growth
Taiwan Semiconductor Manufacturing Company reported third-quarter 2026 revenue of $46.72 billion on October 15, a 41.2% jump from the same quarter last year.Key Highlights
In its home currency, TSMC brought in consolidated revenue of NT$1,494.24 billion. That figure is up 50.9% year over year and 17.6% from the previous quarter.AI Demand
Measured in US dollars, revenue climbed 41.2% year over year and 16.2% quarter over quarter. Net income reached NT$763.06 billion, up 68.7% year over year and 8.0% from the prior quarter. Advertisement@media only screen and (min-width: 0px) and (min-height: 0px) { div[id^="wrapper-sevio-de1434f5-fa9e-44a6-93c3-4c2439763717"] { width:320px; height: 100px; } } @media only screen and (min-width: 728px) and (min-height: 0px) { div[id^="wrapper-sevio-de1434f5-fa9e-44a6-93c3-4c2439763717"] { width: 728px; height: 90px; } }
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Diluted earnings per share came in at NT$29.43, also up 68.7% from a year earlier. For holders of TSMC’s American depositary receipts, that works out to $4.60 per ADR. Wall Street had expected net income of NT$746.3 billion.
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Margins were the real eye-opener:
Gross margin: 66.4% Operating margin: 58.7% Net margin: 51.1%
All three came in ahead of the company’s earlier guidance and analyst estimates. Where the money is coming from Chips built on process nodes of 7 nanometers and below made up 79% of TSMC’s wafer revenue in the quarter. Here is how the advanced share split out:
3nm: 33% of wafer revenue 5nm: 28% 7nm: 10% 2nm: 8%
By platform, high-performance computing contributed 68% of TSMC’s total revenue. What this means for investors and the chip industry Sequentially, net income rose 8.0% while NT dollar revenue rose 17.6%. With 2nm at 8% of wafer revenue, its trajectory over the coming quarters will show how quickly customers are migrating to the newest technology. With HPC at 68% of revenue, TSMC is heavily exposed to the AI spending cycle. The October 15 report marked TSMC’s sixth straight quarter of record profits.