TSMC guides to sharp Q4 revenue growth after another record quarter
TSMC reported record third-quarter net income of NT$763.06 billion ($23.59 billion), up 68.7% from a year earlier, on revenue of NT$1,494.24 billion ($46.72 billion). The chipmaker guided fourth-quarter revenue to $52.3 billion to $54.3 billion, implying year-over-year growth of 55% to 61%. Advanced technologies made up 79% of wafer revenue, while 2nm chips contributed 8%.
TSMC's third-quarter net profit reached NT$763.06 billion, or $23.59 billion, 68.7% above the prior-year period. Revenue was NT$1,494.24 billion ($46.72 billion), with gross, operating, and net margins of 66.4%, 58.7%, and 51.1%. Diluted EPS was NT$29.43, or $4.60 per ADR.
For the fourth quarter, management projected revenue of $52.3 billion to $54.3 billion, versus $33.73 billion a year earlier. Leading-edge nodes of 7nm and below represented 79% of wafer sales; 2nm rose to 8% from 3%. Capital spending guidance stayed at $60 billion to $64 billion.
TSMC's expansion could affect broad swaths of society through the devices and services powered by advanced chips. Cloud providers, electronics makers, equipment suppliers, and their workers may see demand shifts, while consumers could get faster AI tools but also face price or availability effects if capacity remains tight. Investors and regional economies may benefit from sustained spending, though concentration in advanced-node production could leave supply chains sensitive to disruptions.