TSMC Reports 68.7% Jump in Q3 Net Profit to NT$763.06 Billion

Taiwan Semiconductor Manufacturing Company (TSMC) reported a substantial 68.7% year-over-year increase in net profit for the third quarter of 2026, reaching NT$763.06 billion. This surge in profitability was fueled by robust market demand for the company’s advanced node technologies.

TSMC’s consolidated revenue for the quarter reached approximately NT$1.494 trillion, a 50.9% increase compared to the same period last year. Sequentially, revenue grew by 17.6%, while net profit increased by 8.0%. These results, compiled according to Taiwan’s International Financial Reporting Standards (TIFRS), demonstrate continued momentum in the semiconductor sector. In US dollar terms, Q3 revenue amounted to $46.72 billion, a 41.2% increase year-over-year and a 16.2% increase quarter-over-quarter.

The company’s gross margin stood at 66.4%, with an operating margin of 58.7% and a net profit margin of 51.1%. Notably, advanced process technologies – those at 7nm and below – accounted for 79% of total wafer sales. Specifically, 2nm process technology contributed 8% of Q3 wafer sales, 3nm accounted for 33%, and 5nm represented 28%, while 7nm made up 10% of the total.

The strong Q3 performance reflects the continuing global demand for semiconductors, a trend corroborated by the overall positive momentum in the tech sector and Taiwanese investment funds. TSMC anticipates this demand to persist into Q4, with continued strong performance supported by rapid expansion of 2nm production capacity. The company forecasts Q4 revenue between $52.3 billion and $54.3 billion, assuming an exchange rate of NT$31.8 to one US dollar, with a gross margin of 65%-67% and an operating margin of 56.5%-58.5%.

TSMC’s Q3 results showcase a significant increase in both revenue and profitability, driven by a high proportion of sales from advanced technologies. The substantial year-over-year and sequential growth in key financial metrics underscores the company’s position in a market benefiting from sustained, albeit potentially volatile, demand. The impressive performance is further bolstered by a strong gross margin, indicating effective cost management and pricing power within the advanced node segment.