TSMC reported a sixth consecutive quarter of record profit on 15 October, with third-quarter net income of NT$763.1 billion, up 68.7% from a year earlier and above the NT$746.34 billion estimate, CNBC reported.
Key points
- Third-quarter revenue reached NT$1.49 trillion, against an NT$1.47 trillion LSEG SmartEstimate.
- The profit was TSMC’s 11th consecutive quarterly increase.
- TSMC raised its 2026 capital spending forecast in July to $60 billion to $64 billion.
- Its planned Arizona investment totals $265 billion, including an additional $100 billion unveiled in July.
TSMC profit exceeds the LSEG estimate
Net profit was $23.59 billion in the July-to-September quarter. Reuters reported the year-on-year increase as 69%, against CNBC’s 68.7%. Reuters put the LSEG SmartEstimate at NT$746.3 billion, compiled from 16 analysts. It was also TSMC’s 11th consecutive quarter of profit growth.
The previous quarterly profit record was TWD 706.56 billion in the second quarter, when net income rose 77.4% from a year earlier, Benzinga reported in its earnings preview. TSMC’s third-quarter result extended a run of quarterly profit records that began before the latest reporting period.
TSMC’s Taipei-listed shares closed down 2% ahead of the earnings release on 15 October, while the benchmark index fell 3.4%. The shares had gained 57% so far in 2026, compared with a 62% rise for the broader Taiwanese market.
NT$1.49 trillion in quarterly revenue
Third-quarter revenue of NT$1.49 trillion exceeded the NT$1.47 trillion LSEG SmartEstimate cited by CNBC. Third-quarter revenue was $46.36 billion, CNBC reported. Benzinga reported $46.11 billion for the same NT$1.49 trillion figure, while Startup Fortune put the preliminary figure at roughly $46.71 billion in its 12 October preview.
Revenue rose 50% from a year earlier in the third quarter. September contributed NT$511.86 billion, up 54.6% year on year. AI Affairs reported the September sales increase ahead of the profit announcement.
TSMC supplies Nvidia and Apple. Analysts cited by Reuters said demand remained strong for its AI chipmaking capacity and CoWoS advanced packaging technology. Reuters put TSMC’s market capitalisation at around $2 trillion, almost twice that of South Korean rival Samsung Electronics.
Startup Fortune reported that high-performance computing accounted for 66% of TSMC’s second-quarter revenue and that revenue in the segment grew 20% from the preceding quarter. The category includes AI accelerators, data-centre chips and gaming processors. The publication also put second-quarter gross margin at 67.7%.
Arizona plans and $64 billion capex ceiling
TSMC raised its 2026 capital spending forecast in July to between $60 billion and $64 billion. Its previous prediction was at the high end of a $52 billion to $56 billion range. The revised budget accompanied plans for more manufacturing capacity as demand for advanced chips and packaging remained strong.
The company’s planned investment in Arizona totals $265 billion, including an additional $100 billion unveiled in July. Neither an evaluation nor the Arizona spending plan is quarterly revenue.
Reuters reported that Tesla chief executive Elon Musk said his companies would establish and run the Terafab AI chip complex, where TSMC might sublease space. Investors were watching TSMC’s earnings call, scheduled for 0600 GMT to provide fourth-quarter and updated full-year guidance, amid fears of further US Federal Reserve interest-rate increases, Reuters reported.
Equipment maker ASML said on 14 October that customers were already seeking to place orders for 2029 and 2030.
