TSMC posts record profit for a sixth straight quarter, beating estimates on AI boom
TSMC reported its third-quarter earnings on Thursday.
Key points
- TSMC reported a record third-quarter profit, beating estimates on strong AI chip demand.
- Net profit surged 68.7% year over year, and operating margin reached 58.7%.
- High-performance computing made up 68% of revenue, with 3-nanometer chips at 33%.
Taiwan Semiconductor Manufacturing Co. reported a record third-quarter profit on Thursday, beating estimates as global demand for AI chips remained strong. The world's largest contract chipmaker posted a 68.7% year-over-year surge in net profit, marking a record for a sixth straight quarter.
TSMC's operating margin for the quarter was 58.7%, above the top end of its guidance range of 58%, which the company said reflected its pricing power amid the AI-driven semiconductor boom.
Chip and platform breakdown
By technology, 3-nanometer chips made up the largest share of third-quarter revenue at 33%, followed by 5-nanometer and 7-nanometer chips.
By platform, high-performance computing accounted for 68% of revenue, followed by smartphones at 21%. Automotive was the fastest-growing segment quarter over quarter, with 23% growth.
Cash flow and expansion plans
Free cash flow rose to NT$476.56 billion in the third quarter, up from NT$139.38 billion a year earlier. The board approved a NT$7.00 cash dividend for the second quarter.
In July, TSMC outlined plans to expand its U.S. manufacturing footprint, including a total planned investment of $265 billion in Arizona. The chipmaker is also reportedly considering expanding beyond Arizona, evaluating a potential investment in Texas.
