TSMC Posts Record Q3 Profit as AI Chip Demand Beats Estimates

Taiwan Semiconductor Manufacturing Co. (TSMC), the world's largest contract chipmaker, reported a record third-quarter profit on Thursday, October 15, 2026. The results beat market estimates, powered by sustained global demand for artificial intelligence chips.

According to CNBC, TSMC's third-quarter net income reached NT$763.1 billion, a 68.7% increase from the same period last year. This marks the company's sixth straight quarter of record profitability. Revenue came in at NT$1.49 trillion (approximately $46.36 billion), surpassing the LSEG SmartEstimate consensus of NT$1.47 trillion.

The company's operating margin stood at 58.7%, exceeding the upper end of its guidance range of 58%. This performance highlights TSMC's pricing power as the AI boom continues to drive semiconductor demand. By technology node, 3-nanometer chips accounted for the largest share of revenue at 33%, followed by 5-nanometer and 7-nanometer nodes.

In terms of platforms, high-performance computing (HPC) remained the dominant revenue driver at 68%, while smartphones contributed 21%. The automotive segment showed the fastest growth quarter-on-quarter, rising by 23%. Free cash flow surged to NT$476.56 billion in the third quarter, up significantly from NT$139.38 billion a year ago.

TSMC's board approved a cash dividend of NT$7.00 per share. The announcement follows previous disclosures about expanding U.S. manufacturing, including a planned $265 billion investment in Arizona. Reports also indicate the company is evaluating potential investments in Texas to further strengthen its presence in the United States.