Taiwan Semiconductor Manufacturing Co. (TSMC) reported a record third-quarter profit, marking its sixth consecutive quarter of record net income, driven by robust global demand for AI chips [1]. The company posted revenue of 1.49 trillion new Taiwan dollars (NT$) ($46.36 billion), surpassing analyst expectations of NT$1.47 trillion, and net income of NT$763.1 billion, also beating the expected NT$746.34 billion [1]. This represents a 68.7% year-over-year surge in net profit for the quarter [1].
TSMC's operating margin reached 58.7%, exceeding the upper end of its guidance range of 58%, highlighting the company's strong pricing power amid the AI-driven semiconductor boom [1]. In terms of technology, 3-nanometer chips contributed the largest share of revenue at 33%, followed by 5-nanometer and 7-nanometer chips [1]. By platform, high-performance computing accounted for 68% of revenue, with smartphones at 21%. The automotive segment was the fastest-growing on a quarter-on-quarter basis, with a 23% growth rate [1].
The company's free cash flow surged to NT$476.56 billion in the third quarter, up from NT$139.38 billion a year earlier [1]. TSMC's board approved a NT$7.00 cash dividend for the second quarter [1].
Looking ahead, TSMC had previously announced plans to expand its U.S. manufacturing footprint, including a total planned investment of $265 billion in Arizona, and is reportedly considering further expansion in Texas to strengthen its U.S. manufacturing presence [1].
CONCLUSION
TSMC's record-breaking third-quarter results underscore the company's dominant position in the AI chip market and its ability to capitalize on surging demand. With strong financial performance, robust margins, and ambitious expansion plans, TSMC is poised to maintain its leadership in the semiconductor industry.