TSMC revenue rises 41.2%, with Q4 forecast at $52.3-$54.3 billion

Taiwan Semiconductor Manufacturing Co. reported third-quarter revenue of $46.72 billion, a 41.2% increase from a year earlier. The company forecast fourth-quarter revenue of $52.3 billion to $54.3 billion, citing strong demand for its leading-edge chipmaking processes.

The forecast midpoint of $53.3 billion is about 14.1% above the third-quarter result. TSMC said its outlook assumes an exchange rate of NT$31.8 to the U.S. dollar and includes continued leading-edge demand alongside a steep ramp in its 2-nanometer technology.

Revenue also rose 16.2% from the previous quarter and exceeded TSMC’s prior guidance range of $44.6 billion to $45.8 billion. Net income was NT$763.06 billion, and diluted earnings per share were NT$29.43, equivalent to $4.60 per American depositary receipt.

TSMC posted a gross margin of 66.4%, an operating margin of 58.7% and a net profit margin of 51.1%. Processes at 7 nanometers and below generated 79% of wafer revenue, led by 3-nanometer technology at 33% and 5-nanometer at 28%. The 7-nanometer and 2-nanometer processes contributed 10% and 8%, respectively.

High-performance computing accounted for 68% of net revenue, according to TSMC, up from 66% in the second quarter and 57% a year earlier. The company did not disclose a figure for AI-specific orders or revenue.

For the fourth quarter, TSMC forecast a gross margin of 65% to 67% and an operating margin of 56.5% to 58.5%.