Taiwan Semiconductor Manufacturing Co. reported record third-quarter profit on October 15 as demand for chips used in artificial intelligence systems remained higher than its production capacity. The results show how strongly AI data-center spending is driving the semiconductor industry.
Record profit follows AI demand
TSMC said net income reached NT$763.06 billion, or about $24 billion, for the quarter ended September 30. That was 68.7% higher than a year earlier. Revenue rose 50.9% to NT$1.49 trillion, or $46.72 billion, according to the company’s earnings release.
Reuters reported that the profit beat analyst forecasts and was driven by strong global demand for AI processors. TSMC’s customers include Nvidia and Apple, making its results an important signal for the wider AI hardware market.
Advanced chips lead production
Advanced manufacturing processes accounted for 79% of TSMC’s wafer revenue in the quarter. The company said 3-nanometer chips made up 33% of wafer revenue, while 2-nanometer production contributed 8% as the newer process began to ramp up.
TSMC expects fourth-quarter revenue between $52.3 billion and $54.3 billion. Chief Financial Officer Wendell Huang said demand for leading-edge technology remains strong, including demand tied to the ramp-up of 2-nanometer chips.
Texas expansion remains possible
TSMC is evaluating additional U.S. production beyond its planned Arizona facilities. The company said teams have visited Texas to study possible sites and that it is open to working with Elon Musk’s proposed “Terafab” project, although no final decision has been made.
The Associated Press reported that TSMC has pledged $265 billion for Arizona investments, including a $100 billion commitment announced in July. The company’s 2026 capital-spending budget is between $60 billion and $64 billion. Those expansion plans will be watched by chip buyers, device makers and governments seeking more local semiconductor capacity.
References
Associated Press. (2026, October 15). Taiwan chipmaker TSMC explores Texas investment to expand production in the US. AP News. https://apnews.com/article/taiwan-tsmc-chip-manufacturing-ai-us-arizona-d1fbfb0bec8a914b0365996b39ecc138
Reuters. (2026, October 15). TSMC Q3 profit jumps 69% to record, beating expectations. Investing.com. https://www.investing.com/news/stock-market-news/tsmc-q3-profit-jumps-69-to-record-beating-expectations-4950551
Taiwan Semiconductor Manufacturing Company Limited. (2026, October 15). TSMC reports third quarter EPS of NT$29.43. https://investor.tsmc.com/japanese/encrypt/files/encrypt_file/reports/2026-10/526b65af7305df2dde6b9ece6812b1fdf1e49f9b/3Q26%20EarningsRelease.pdf