TSMC Posts Record Q3 Profit as AI Chip Demand Beats Estimates
TSMC reported its sixth consecutive quarterly record profit, driven by strong AI chip demand, with revenue and net income both exceeding analyst expectations.
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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.