TSMC reports record quarterly profit, signals caution over 2027
The chipmaker raised its 2026 revenue growth forecast to about 44% in dollar terms while warning of pressure on price-sensitive markets.
TSMC reported third-quarter net profit of NT$763.1 billion (US$23.59 billion), a 69% increase from a year earlier and its sixth consecutive quarterly record. The result exceeded LSEG SmartEstimate’s NT$746.3 billion forecast, Reuters reported.
Revenue reached NT$1.49 trillion, rising 51%, according to the company’s results. Measured in US dollars, revenue increased 41.2% to US$46.72 billion. TSMC reported an operating margin of 58.7%, with high-performance computing accounting for 68% of revenue and smartphones contributing 21%.
For the fourth quarter, the company forecast revenue between US$52.3 billion and US$54.3 billion, compared with US$33.73 billion a year earlier. It raised its forecast for 2026 revenue growth in dollar terms to about 44%, having previously projected more than 40%.
Chairman and chief executive C.C. Wei nevertheless said TSMC was planning cautiously for 2027. He cited higher component prices and macroeconomic uncertainty as challenges for consumer markets and price-sensitive segments. TSMC said demand remained well above its available capacity and that it saw no indication of slowing AI demand, Reuters reported.
TSMC plans an additional 3nm fabrication plant in Tainan, with production scheduled for the opening half of 2028, The Information reported. Wei attributed the decision to strong customer demand. Construction of its second Arizona plant is complete, and mass production is scheduled for 2027’s third quarter, earlier than planned.
The company maintained its 2026 capital spending projection of US$60 billion to US$64 billion. Chief financial officer Wendell Huang said spending over 2026–2028 would be significantly greater than during the preceding three years.
