Overview
- TSMC reported record third-quarter revenue of about $46.7 billion and net income of NT$763.06 billion on October 15, with revenue up roughly 50.9% year over year.
- Management raised full-year revenue growth to about 44% and guided fourth-quarter revenue to $52.3 billion–$54.3 billion while reaffirming 2026 capital spending of $60–$64 billion and saying 2026–2028 capex will far exceed 2023–2025 levels.
- AI and high-performance computing now drive the business, accounting for about 68% of net revenue, and advanced nodes (7nm and below) made up roughly 79% of wafer revenue with 3nm alone at about 33%.
- TSMC said its initial 2nm ramp lowered gross margin to 66.4% from 67.7% and warned that building expensive overseas fabs will further reduce consolidated gross margins by several percentage points over coming years.
- Key near-term watchpoints are whether fourth-quarter revenue meets guidance, the pace and yields of the 2nm ramp, progress on nearly 20 fabs under development globally, and whether large customer capital spending holds into 2027.