TSMC posts record profit for a sixth straight quarter, beating estimates on AI boom — SkimNews
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- TSMC reported Q3 net income of NT$763.1 billion versus NT$746.34 billion expected, with revenue of NT$1.49 trillion ($46.36 billion), marking a sixth straight record-profit quarter and a 68.7% year-over-year surge.
- TSMC guided Q4 revenue to $52.3–$54.3 billion — a 14% sequential increase and roughly 58% year-over-year jump at midpoint — while operating margin hit 68.7%, exceeding the upper end of the company's own 58% guidance.
- Advanced chip technologies (7nm and beyond) made up 79% of wafer revenue, with 3nm chips accounting for 33% — the largest single share of Q3 revenue.
- High-performance computing drove 68% of platform revenue, while the automotive segment was the fastest-growing at 23% quarter-over-quarter.
- TSMC's free cash flow surged to NT$476.56 billion in Q3 from NT$139.38 billion a year earlier, and the company flagged significantly higher capital expenditure for 2026–2028 to meet demand.
- TSMC completed construction of its second Arizona fab with mass production set for Q3 2027 and is evaluating a potential Texas expansion, part of $265 billion in planned U.S. investment.
- SemiAnalysis analyst Sravan Kundojjala noted TSMC is vetting whether customers have the financing and components to deploy AI systems — yet even after those checks, demand still runs well above supply capacity.
Why it matters: TSMC's sixth straight record quarter confirms AI chip demand continues to outpace production capacity, giving the company pricing power that pushed margins above its own guidance ceiling. With advanced nodes now 79% of wafer revenue and $265 billion committed to U.S. fabs, TSMC is entrenching itself deeper into the global AI supply chain — though its active vetting of customer financing reveals disciplined risk management beneath the boom narrative.
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