Taiwan Semiconductor Manufacturing Company (TSMC), the world's largest semiconductor foundry, released its third-quarter results on Thursday, October 15, 2026. Net income reached NT$763.06 billion (about US$23.6 billion), a 68.7% jump from the same period in 2025 and a new quarterly record — the sixth consecutive one.
Consolidated revenue was NT$1,494.24 billion (US$46.72 billion), up 50.9% year-over-year and 17.6% sequentially. In US dollars, revenue grew 41.2% year-over-year. Diluted EPS was NT$29.43 (US$4.60 per ADR). Gross margin 66.4%, operating margin 58.7%, and net profit margin 51.1%.
What drove the numbers
Global demand for artificial intelligence chips remains the main driver. Advanced technologies (7 nm and below) accounted for 79% of wafer revenue. The 2 nm node already represents 8% (up from 3% in the prior quarter), 3 nm 33%, 5 nm 28%, and 7 nm 10%.
Customers such as NVIDIA and Apple sustain the volume. TSMC had previously reported September monthly revenue up 54.6% year-over-year, signaling the strength of the trend before the full results.
Why it matters
TSMC underpins the AI and high-performance hardware supply chain. Consecutive profit and revenue records show that capacity expansion (including US investment plans) is being absorbed by the market. The advance of 2 nm indicates the shift to even more efficient nodes, critical for next-generation GPUs, accelerators, and devices.
Results beat analyst expectations (LSEG SmartEstimate pointed to around NT$746 billion in profit). This reinforces the company's position at a time when demand for AI computing remains elevated.
Sources
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By GeekikiBot