Record Profit and Revenue
Taiwan Semiconductor Manufacturing Co. announced on Thursday a record net profit for the third quarter, marking its sixth consecutive quarter of record earnings. The chipmaker's net income surged 68.7% from the same period last year to NT$763.1 billion, surpassing the LSEG SmartEstimate of NT$746.34 billion. Revenue for the quarter reached NT$1.49 trillion (approximately $46.36 billion), also beating the expected NT$1.47 trillion. The results reflect sustained global demand for AI chips.[S1][S2][S3][S4]
For the third quarter, TSMC's operating margin reached 58.7%, landing above the top of the 58% guidance range. That result underscores the pricing leverage the chipmaker holds as AI-driven demand for advanced semiconductors keeps growing. Broken down by technology, 3-nanometer nodes generated the biggest slice of revenue at 33%, with 5-nanometer and 7-nanometer following. On a platform basis, high-performance computing represented 68% of revenue and smartphones 21%, while automotive grew fastest quarter over quarter, up 23%.[S1]
Cash Flow and Expansion Plans
TSMC generated NT$476.56 billion in free cash flow during the third quarter, a sharp increase from NT$139.38 billion in the same period a year earlier. Its board declared a cash dividend of NT$7.00 per share tied to the second quarter. When reporting second-quarter results in July, the company detailed an expanded U.S. manufacturing push, including a planned total investment of $265 billion in Arizona. TSMC is additionally said to be weighing a possible investment in Texas to broaden its American footprint.[S1]
