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TSMC Sets Sixth Straight Quarterly Profit Record, Takes Cautious 2027 View

TSMC confirmed record third-quarter net income of NT$763.06 billion as advanced-chip demand remained strong, while taking a cautious approach to 2027 planning.

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Nov 1, 2026 - 01:53

Nov 1, 2026 - 02:17

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TSMC facility. Image: Nambawan/Shutterstock, via Investment Monitor.

TSMC Sets Sixth Straight Quarterly Profit Record, Takes Cautious 2027 View

Taiwan Semiconductor Manufacturing Co. reported its sixth consecutive quarterly profit record on October 15, but warned that economic uncertainty and higher component costs would make its planning for 2027 more cautious.

The world’s largest contract chipmaker said third-quarter net income reached NT$763.06 billion (about US$23.6 billion), up 68.7% from the same period a year earlier. Revenue rose 50.9% to NT$1,494.24 billion, according to the company’s earnings release. Reuters reported the result as a record for TSMC and above the NT$746.3 billion analyst estimate cited by LSEG SmartEstimate.

AI demand remains strong

TSMC’s results show that demand for leading-edge manufacturing remains a major driver of its business. The company said third-quarter shipments of its 2-nanometer process generated 8% of total wafer revenue, while 3-nanometer and 5-nanometer processes contributed 33% and 28%, respectively. In total, technologies at 7 nanometers and below accounted for 79% of wafer revenue.

TSMC Chief Financial Officer Wendell Huang said the quarter was supported by strong demand for leading-edge process technologies and that the company expected this support to continue into the fourth quarter, including through the ramp-up of its 2-nanometer process.

Reuters reported that Chief Executive C.C. Wei described demand as “extremely robust” and said TSMC saw no sign of a slowdown in the broader AI trend. The company also said demand was exceeding its available supply capacity.

Strong near-term guidance, more caution beyond it

For the fourth quarter, TSMC expects revenue between US$52.3 billion and US$54.3 billion. That would represent continued growth from the third quarter’s US$46.72 billion in revenue. The company forecast a gross margin of 65% to 67% and an operating margin of 56.5% to 58.5%.

The longer-term tone was less confident. Reuters reported that Wei said consumer and price-sensitive market segments were being challenged by rising component prices and macroeconomic uncertainty. He said TSMC was therefore being prudent in its business planning for 2027.

That caution does not amount to a forecast of an AI slowdown. Rather, it separates strong current demand for advanced computing and networking chips from weaker or more uncertain conditions in consumer-related markets. Reuters also reported that TSMC raised its expectation for 2026 full-year revenue growth to about 44%, compared with its previous forecast of more than 40%.

The company’s quarterly figures therefore present two signals at once: AI-related chip demand is still supporting record profits, while TSMC is avoiding an aggressive assumption that every part of the semiconductor market will remain equally strong in 2027.