TSMC reports record Q3 revenue of $46.72 billion, up 50.9% year over year
In brief
- TSMC Q3 revenue hit a record NT$1,494.24 billion (about $46.72 billion), up 50.9% year over year.
- Net income rose 68.7% to a record NT$763.06 billion ($23.59 billion).
- High-performance computing, including AI accelerators, accounted for 68% of net revenue.
- Q4 revenue guidance ranges from $52.3 billion to $54.3 billion.
- 2026 growth outlook raised to approximately 44% in US dollar terms.
Profit and margins
Net income hit a record NT$763.06 billion ($23.59 billion), a 68.7% jump year over year, based on the October 15 results reported by Crypto Briefing. Profit grew faster than revenue.
Margins slipped a little. Gross margin came in at 66.4% (down from 67.7% in the second quarter), while operating margin landed at 58.7%, per the same report.
Where the revenue came from
The product mix is where it gets interesting. Advanced nodes, meaning chips built on 7nm processes and smaller, generated 79% of TSMC's wafer revenue, and the 3nm process alone accounted for 33%. Crypto Briefing also reported that 2nm production is expected to come online soon.
High-performance computing is the headline number, though. At 68% of net revenue, the category that covers AI accelerators and data center processors now makes up more than two-thirds of TSMC's business.
Guidance and what's ahead
TSMC guided fourth-quarter revenue to between $52.3 billion and $54.3 billion. It also raised its 2026 revenue growth outlook to approximately 44% in US dollar terms, up from a prior forecast of more than 40%. These are TSMC's own forecasts (not results), and they'll be tested when the company reports the fourth quarter.
Crypto Briefing reported that TSMC plans to expand its 3nm capacity in Taiwan, with production from that expansion expected in the first half of 2028. The outlet also reported that the company has committed an additional $100 billion investment in Arizona.
Not everything in the report points the same way.
Crypto Briefing described management as cautious about 2027, citing broader economic uncertainties. TSMC's published guidance, as reported, only covers the fourth quarter and full-year 2026, so the record numbers don't say anything about the year after.
