Taiwan Semiconductor Manufacturing Co. reported record third-quarter revenue and net income, and raised its 2026 revenue growth outlook. Management also expressed caution about 2027, citing broader economic uncertainties.
Taiwan Semiconductor Manufacturing Co. reported record third-quarter revenue of NT$1,494.24 billion, or approximately $46.72 billion, on October 15, 2026. Revenue rose 50.9% from a year earlier and climbed 17.6% compared with the second quarter.
Profit grew faster than sales. Net income hit a record NT$763.06 billion ($23.59 billion), a 68.7% jump year over year.
High-performance computing drives 68% of revenue
High-performance computing, the category covering AI accelerators and data center processors, made up 68% of net revenue. Advanced nodes, meaning chips built on 7nm processes and smaller, generated 79% of wafer revenue.
The 3nm process alone accounted for 33% of wafer revenue. Meanwhile, 2nm production is expected to come online soon.
Margins slip while guidance rises
However, the gross margin came in at 66.4%, down from 67.7% in the second quarter. Operating margin landed at 58.7%.
Looking ahead, TSMC guided fourth-quarter revenue to between $52.3 billion and $54.3 billion. It now expects 2026 revenue growth of approximately 44% in US dollar terms, up from its prior forecast of more than 40%.
Capacity expansion in Taiwan and Arizona
The company plans to expand its 3nm capacity in Taiwan, with production from that expansion expected in the first half of 2028. TSMC has also committed an additional $100 billion investment in Arizona.
Management, however, has expressed caution about 2027, citing broader economic uncertainties. The next markers are the timing of the 2nm ramp, the progress of the Arizona investment, and whether fourth-quarter revenue lands inside the $52.3 billion to $54.3 billion range.
Source: Crypto Briefing
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