TSMC reported record financial results for the third quarter of 2026, with revenue reaching TWD 1,494.24 billion, or approximately $46.72 billion. Net income rose by 68.7% year-over-year to a record TWD 763.06 billion, equivalent to $23.59 billion.
High-performance computing, which includes AI accelerators and data center processors, accounted for 68% of total net revenue. Advanced nodes of 7nm and smaller generated 79% of wafer revenue, with the 3nm process alone contributing 33%.
The company reported a gross margin of 66.4% and an operating margin of 58.7%. TSMC raised its full-year 2026 revenue growth forecast to approximately 44% in US dollar terms, exceeding the previous estimate of 40%.
TSMC plans to expand 3nm production capacity in Taiwan, with output from the new facilities expected in the first half of 2028. Management expressed caution regarding the 2027 outlook due to broader economic uncertainties.
Investors are monitoring the 2nm production ramp-up, progress on the Arizona facility, and fourth-quarter revenue projections, which are estimated to fall between $52.3 billion and $54.3 billion.
