Taiwan Semiconductor Manufacturing Company reported net profit of NT$763.1 billion for July to September, up approximately 69% year on year and marking its sixth consecutive quarterly record. Revenue increased 51% to NT$1.49 trillion, while its operating margin reached 58.7%. The world's largest contract chipmaker, which manufactures chips used in Nvidia's AI data centre processors, continued to benefit from substantial demand for artificial intelligence hardware. High-performance computing accounted for 68% of revenue, compared with 21% for smartphones.
Despite saying that demand still far exceeded production capacity and that it saw no sign of an AI slowdown, TSMC adopted a more cautious tone about 2027. Chairman and chief executive C.C. Wei warned that rising component prices and macroeconomic uncertainty were challenging consumer and price-sensitive markets. For the fourth quarter, the company forecast revenue of US$52.3 billion to US$54.3 billion, compared with US$33.73 billion a year earlier. It also raised its forecast for full-year revenue growth in US dollar terms to about 44%, from more than 40% previously.
Expansion remains central to its plans. Strong customer demand prompted another planned 3-nanometre fabrication plant in Tainan, where production is due to begin in the first half of 2028. Construction of the second Arizona plant has been completed, with mass production scheduled for the third quarter of 2027, ahead of the previous timetable. TSMC maintained its 2026 capital expenditure forecast at US$60 billion to US$64 billion. Chief financial officer Wendell Huang said spending over 2026–2028 would be significantly higher than during the preceding three years.
