TSMC reports record third-quarter profits and outlines 2026-2028 expansion plans

What happened

TSMC reported a record net profit of NT$763.1bn ($23.59bn) for the third quarter, which represents a 69% increase compared to the previous year [1]. This result exceeded the NT$746.3bn estimate provided by LSEG SmartEstimate [1]. The company’s revenue rose 51% to NT$1.4tn, or 41.2% to $46.72bn in US dollars [1].

Key financial details from the quarter include:

• An operating margin of 58.7% [1].
• High-performance computing accounted for 68% of revenue [1].
• Smartphones accounted for 21% of revenue [1].
• 3nm chips, which are advanced semiconductors, contributed 33% of wafer revenue [1].

Looking ahead, TSMC expects fourth-quarter revenue to be between $52.3bn and $54.3bn, compared to $33.73bn from the same period last year [1]. For 2026, the company expects revenue to grow by approximately 44% in dollar terms [1]. The company has maintained its capital spending forecast for 2026 at between $60bn and $64bn [1]. Chief financial officer Wendell Huang stated that spending from 2026 to 2028 will be significantly higher than the previous three years [1].

Regarding future production, TSMC plans to build another 3nm fabrication plant (fab) in Tainan, with production expected in the first half of 2028 [1]. In Arizona, the company’s second fab has finished construction, and mass production is scheduled for the third quarter of 2027 [1].

Who is affected

Chairman and chief executive C.C. Wei noted that consumer and price-sensitive market segments are facing challenges due to rising component prices and macroeconomic uncertainties [1]. Because of this, the company is being prudent with business planning for 2027 [1].

TSMC is also expanding its presence in the United States. The company is sending teams to the US to inspect data center construction and power supplies [1]. It is also considering a campus in Texas [1]. C.C. Wei stated that any fab involved in a Terafab tie-up must be operated by TSMC [1].