TSMC posts record Q3 as AI chip demand pushes revenue up 50.9%

Taiwan Semiconductor Manufacturing Co. just had the kind of quarter most companies only see in investor-day slide decks. On October 15, 2026, the chipmaker reported record third-quarter revenue of NT$1,494.24 billion, or approximately $46.72 billion. That figure is up 50.9% from a year earlier. Revenue climbed 17.6% compared with the second quarter. Profit grew even faster than sales. Net income hit a record NT$763.06 billion ($23.59 billion), a 68.7% jump year over year. High-performance computing, the category that covers AI accelerators and data center processors, made up 68% of net revenue. Advanced nodes, meaning chips built on 7nm processes and smaller, generated 79% of wafer revenue. The 3nm process alone accounted for 33% of wafer revenue. Meanwhile, 2nm production is expected to come online soon. Margins slip, guidance climbs Gross margin came in at 66.4%, down from 67.7% in the second quarter. Operating margin landed at 58.7%. TSMC guided fourth-quarter revenue to between $52.3 billion and $54.3 billion. The full-year outlook moved higher too. TSMC now expects 2026 revenue growth of approximately 44% in US dollar terms, up from its prior forecast of more than 40%. Buildin...