TSMC's Quarterly Revenue Rises 41% to $46.7 Billion
Taiwan Semiconductor Manufacturing Co., the contract manufacturer whose customers include Nvidia, Apple and AMD, said third-quarter revenue rose 41% from a year earlier to $46.72 billion and forecast $52.3 billion to $54.3 billion for the final quarter of the year.
Taiwan Semiconductor Manufacturing Co., known as TSMC, reported revenue of $46.72 billion for the July-to-September quarter, up 41.2% from a year earlier and above the top of its own forecast. Net income, or profit after all costs and taxes, rose 68.7% from a year earlier to NT$763.06 billion, or US$4.60 per American depositary share unit.
TSMC does not sell chips under its own name. It manufactures them for companies that design them, including Nvidia, Apple and AMD.
The company forecast fourth-quarter revenue of $52.3 billion to $54.3 billion. Its newest manufacturing process, called 2-nanometer, made up 8% of wafer revenue, up from 3% the quarter before.
"Our business in the third quarter was supported by strong demand for our leading-edge process technologies," said Wendell Huang, TSMC's chief financial officer, who said he expects that demand to continue, including a steep ramp-up of 2-nanometer production. TSMC's shares trade in New York as well as in Taipei.
Hsinchu, Taiwan — Taiwan Semiconductor Manufacturing Co., the company that builds chips designed by Nvidia, Apple, AMD and other technology firms, reported quarterly revenue of $46.72 billion, up 41.2% from a year earlier.
TSMC is a foundry, meaning it manufactures chips to other companies' designs rather than selling its own. Its stock trades on the Taiwan Stock Exchange and, as American depositary receipts, on the New York Stock Exchange.
In its own currency, the New Taiwan dollar, TSMC reported revenue of NT$1,494.24 billion for the quarter ended September 30, up 50.9% from a year earlier and 17.6% from the previous quarter. Net income rose 68.7% from a year earlier to NT$763.06 billion, and diluted earnings were NT$29.43 a share, or US$4.60 per American depositary share unit. Gross margin, the share of revenue left after the direct cost of making the chips, was 66.4%. In dollars, revenue beat the company's own forecast of $44.6 billion to $45.8 billion.
Most of the money came from TSMC's most advanced production lines. Chip manufacturing processes are named by "nanometer" generations, where smaller numbers mean newer technology that packs more transistors into the same space. The company's 3-nanometer process brought in 33% of wafer revenue, and its newest 2-nanometer process contributed 8%, up from 3% in the second quarter. Processes at 7 nanometers and below together made up 79%.
"Our business in the third quarter was supported by strong demand for our leading-edge process technologies," said Wendell Huang, TSMC's senior vice president and chief financial officer. "Moving into fourth quarter 2026, we expect our business to be supported by continued strong demand for our leading-edge process technologies, including the steep ramp-up of our 2-nanometer technology."
For the October-to-December quarter, TSMC forecast revenue of $52.3 billion to $54.3 billion, with a gross margin of 65% to 67%.