TSMC reported third-quarter revenue of $46.36 billion, exceeding Wall Street expectations of $45.4 billion. Net income rose 68.7% to $23.57 billion, surpassing analyst projections by $500 million. Despite these results, company shares fell 2% amid a broader market selloff in AI-related stocks.
High-performance computing, including chips for Nvidia, accounted for 68% of total revenue. The three-nanometer manufacturing process generated 33% of sales, while the two-nanometer node, which entered production in late 2025, contributed 8% of revenue. Demand for automotive chips grew 22% year-over-year, and smartphone chip orders increased by 10%.
The company completed construction of its three-nanometer Fab 2 plant in Arizona and is currently installing equipment, with mass production scheduled for the third quarter of 2027. This facility is part of a $265 billion investment plan that includes additional plants for four-nanometer, two-nanometer, and 1.6-nanometer chips, alongside a new packaging facility.
TSMC is scaling capacity for its two-nanometer process and developing a 1.6-nanometer technology known as A16. To support these growth initiatives, the company announced plans to significantly increase capital expenditures over the next two years.
