Taiwan Semiconductor Manufacturing Company (TSMC), the world’s largest contract chipmaker, reported a record quarterly net profit of T$763.1 billion ($23.59 billion) for the July–September quarter, marking a 69% increase year-on-year. Driven by robust demand for artificial intelligence (AI) chips, the company recorded its sixth consecutive quarterly profit record and 11th straight quarter of profit growth. TSMC also raised its 2026 full-year revenue growth forecast to approximately 44%, reflecting sustained demand for advanced semiconductors.
Despite the strong performance, TSMC cautioned that macroeconomic uncertainties and rising component prices could weigh on consumer-focused and price-sensitive market segments in 2027. Chief Executive C.C. Wei said the company was adopting a prudent approach to business planning, even as demand for its chipmaking capacity continued to exceed supply. The company expects fourth-quarter revenue to reach $52.3 billion to $54.3 billion, representing potential year-on-year growth of up to 61%, while maintaining its 2026 capital expenditure forecast at $60 billion to $64 billion.
Meanwhile, TSMC is expanding its US manufacturing presence through a $265 billion investment programme in Arizona and is evaluating further opportunities in Texas following requests from major American customers. Its second Arizona fabrication plant has completed construction, with mass production expected to begin in the third quarter of 2027, ahead of schedule. The company also highlighted growing demand for AI processors and networking chips, reinforcing its long-term growth prospects despite recent volatility in technology stocks and concerns over the sustainability of AI investments.
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