TSMC third-quarter revenue rises about 50% to a record on AI chip demand
In short
Taiwan's TSMC, the world's largest contract chipmaker, posted third-quarter revenue of about NT$1.49 trillion, up around 50% from a year earlier and above the NT$1.46 trillion market forecast, Korean outlets reported on October 8. September revenue was about NT$511.86 billion, up 54.6% year on year but down 0.6% from August. Operating profit, net profit and the outlook are due at the company's October 15 earnings release.
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Taiwan Semiconductor Manufacturing Co. (TSMC), the world's largest contract chipmaker, recorded its highest-ever quarterly revenue in the third quarter, driven by demand for artificial intelligence chips, Korean outlets reported on October 8. Yonhap, citing Reuters and Taiwan's Central News Agency, put revenue at NT$1,494.243 billion, about 50% higher than a year earlier. Korea Economic Daily and Seoul Economic Daily, citing Bloomberg and CNBC, gave about NT$1.49 trillion and growth of 51%. All three said the figure exceeded the market forecast of NT$1.46 trillion. [ 1 , 2 , 3 , 4 ]
Revenue for September, released on the same day, was about NT$511.86 billion, up 54.6% from a year earlier but 0.6% lower than August, which Yonhap described as the previous record month. Yonhap reported that revenue for January to September totalled NT$3,898.727 billion, up 41.1% year on year. The quarterly figure is the sum of TSMC's monthly disclosures for July to September; the company will publish operating profit, net profit and its outlook on October 15. [ 1 , 3 , 4 ]
The outlets named Nvidia and Apple among TSMC's main customers and described the company as a leading beneficiary of growing AI chip demand. Korea Economic Daily and Seoul Economic Daily said heavy investment in AI data centers was keeping demand strong for advanced process and packaging capacity. Yonhap said the rise was also attributed to increased chip orders ahead of new smartphone launches. [ 1 , 3 , 4 ]
Seoul Economic Daily said markets had recently discussed rising corporate debt from AI infrastructure spending, tighter regulation and a possible slowdown in AI investment, and that TSMC's revenue was taken as a sign that AI chip demand had not clearly turned down. [ 4 ]
TSMC is expanding capacity: it has committed to invest a total of $265 billion in its Arizona production site and is considering further expansion in Texas, the business dailies reported. North American customers accounted for more than 75% of its revenue in the first half of the year. Ahead of the October 15 results, markets are watching next year's capital spending and advanced chip pricing; Taiwanese local media have raised the possibility of wafer price increases of 3% to 6% in 2027. Development of the next-generation 1.4-nanometer A14 process and expansion of CoWoS advanced packaging capacity are also in focus. [ 1 , 4 ]
Why it matters
Seoul Economic Daily said the result was read as a sign that demand for AI chips has not clearly weakened, despite recent talk of rising corporate debt from AI infrastructure spending, tighter regulation and a possible slowdown in AI investment. Korean business outlets said markets are watching the October 15 results for next year's capital spending and pricing of advanced chips.
Key facts
- TSMC's third-quarter revenue was about NT$1.49 trillion; Yonhap gave the figure as NT$1,494.243 billion. [ 1 , 3 , 4 ]
- Revenue rose 51% year on year according to Korea Economic Daily and Seoul Economic Daily, and about 50% according to Yonhap. [ 1 , 2 , 3 , 4 ]
- The result beat the market forecast of NT$1.46 trillion. [ 1 , 3 , 4 ]
- September revenue was about NT$511.86 billion, up 54.6% from a year earlier and down 0.6% from August. [ 1 , 3 , 4 ]
- Revenue for January to September was NT$3,898.727 billion, up 41.1% year on year, Yonhap reported. [ 3 ]
- Nvidia and Apple are among TSMC's main customers. [ 1 , 3 , 4 ]
- TSMC will release operating profit, net profit and its outlook on October 15. [ 1 , 4 ]
Confirmed by several sources
- TSMC's third-quarter revenue was about NT$1.49 trillion, a record, and above the NT$1.46 trillion forecast. [ 1 , 3 , 4 ]
- Third-quarter revenue rose roughly 50% from a year earlier. [ 1 , 2 , 3 , 4 ]
- September revenue rose 54.6% year on year and fell 0.6% from August. [ 1 , 3 , 4 ]
- Growth was driven by demand for AI chips. [ 1 , 2 , 3 , 4 ]
- TSMC has committed to invest a total of $265 billion in its Arizona chip production site and is considering further expansion in Texas. [ 1 , 4 ]
- North American customers accounted for more than 75% of TSMC's revenue in the first half of the year. [ 1 , 4 ]
- Full results including operating profit and net profit are due on October 15. [ 1 , 4 ]
Still unclear
- The exact year-on-year growth rate of third-quarter revenue. Korea Economic Daily and Seoul Economic Daily, citing Bloomberg and CNBC, give 51%; Yonhap, citing Reuters and Taiwan's Central News Agency, gives about 50%.
- The won equivalent of the quarterly revenue. Korea Economic Daily and Seoul Economic Daily give about 64.43 trillion won, while Yonhap gives about 62.87 trillion won.
- Whether TSMC will raise wafer prices by 3% to 6% in 2027. This is a possibility raised in Taiwanese local media, as reported by Korean outlets; the company has not announced it in the documents.
- Whether new smartphone launches contributed to the increase. Only Yonhap cites increased chip orders ahead of new smartphone launches as a factor.