TSMC’s Profit Jumps 69% as Chip Demand Drives Another Growth Surge

TSMC’s quarterly profit jumped nearly 69%, and its revenue forecast points to further growth. The update gives investors fresh evidence of advanced chip demand as semiconductor shares face renewed pressure.

TSMC has delivered a powerful earnings update as investors question how much growth the AI boom can sustain.

The chipmaker reported third-quarter revenue of $46.72 billion, up 41.2% in US dollar terms from a year earlier. Net income rose 68.7% to NT$763.06 billion, while earnings reached $4.60 per US-listed ADR unit.

Its outlook points to further expansion. TSMC expects fourth-quarter revenue of $52.3 billion to $54.3 billion, supported by demand for advanced manufacturing and the ramp-up of its 2-nanometre technology.

Advanced chips carry the momentum

Technologies measuring 7 nanometres and below accounted for 79% of wafer revenue. Gross margin reached 66.4%, with management forecasting a fourth-quarter range of 65% to 67%.

Those figures suggest TSMC is maintaining strong profitability while introducing its latest manufacturing process.

Investor Take: TSMC’s results provide concrete support for the spending behind advanced chips. Its revenue outlook also gives investors a useful benchmark against which to judge the recent weakness in semiconductor shares.

The next test is whether customers maintain their orders and TSMC converts its expanding capacity into profitable sales. Strong business growth can support earnings, but share-price returns will still depend on how much growth investors have already priced in.