TSMC Posts Record Q3 Growth Fueled by AI Chip Demand

Taiwan Semiconductor Manufacturing Company (TSMC), the world's largest contract chipmaker, reported third-quarter revenue of NT$989.92 billion (approximately $32.47 billion), marking a 30% year-over-year increase that surpassed market expectations.

Exceeding Market Forecasts

The results exceeded analysts' consensus estimate of NT$973.26 billion and fell within the company's July guidance range of $31.8-$33 billion. This performance demonstrates TSMC's resilience amid challenging market conditions, particularly in consumer electronics.

AI Demand Powers Growth

The primary growth driver came from artificial intelligence applications, with major clients like Nvidia and Apple significantly increasing orders for advanced chips. These high-performance computing components are essential for AI training and inference workloads.

"The AI revolution is creating unprecedented demand for our cutting-edge manufacturing capabilities," said TSMC CFO Wendell Huang in a preliminary statement. "Our technological leadership positions us perfectly to capitalize on this transformative trend."

Offsetting Consumer Weakness

The strong AI-related demand helped offset continued softness in smartphone and PC markets, where chip sales remain below pre-pandemic levels. Industry analysts note this marks TSMC's successful pivot toward higher-margin advanced chips.

Looking Ahead

The company will release its full quarterly financial report on October 16, which will include:

• Detailed breakdowns by technology node
• Capital expenditure updates
• Revised full-year guidance
• Commentary on future market trends

Key Points:

📈 Record Revenue: NT$989.92B ($32.47B) in Q3, up 30% YoY
🤖 AI Dominance: Nvidia, Apple drive advanced chip demand
⚖️ Market Balance: Offsets consumer electronics slowdown
📅 Next Steps: Full financial report due October 16