Taiwan Semiconductor Manufacturing Co (TSMC) has confirmed ongoing discussions with Elon Musk's Terafab project while reporting record quarterly results. According to Livemint, TSMC CEO C.C. Wei stated during Thursday's earnings call that discussions with Terafab are continuing, while emphasizing that "the fab has got to be run by TSMC." The comments come as TSMC reported a record quarterly net profit of NT$763.1 billion ($23.6 billion) for July-September, extending its streak of record profits to six consecutive quarters. Musk had previously indicated that TSMC's potential involvement could be limited to leasing part of the planned Texas facility rather than managing production, with Intel also involved in developing Terafab technology.
TSMC's latest results demonstrate its dominant position in the global AI hardware supply chain, with net profit rising 68.7% year-on-year to NT$763.06 billion in the third quarter, surpassing its previous record of NT$706.56 billion from the April-June period. As reported by Livemint, revenue climbed 50.9% from a year earlier to NT$1.49 trillion, with the company manufacturing advanced chips for customers including Nvidia, Apple, AMD and Broadcom. CEO Wei noted that demand for advanced chips remained "extremely robust," including as production of the company's 2-nanometre technology ramps up. The strong performance has propelled TSMC's market capitalisation to around $2 trillion, nearly twice that of South Korean rival Samsung Electronics.
TSMC continues its aggressive expansion strategy with $265 billion committed to chipmaking facilities in Arizona, including an additional $100 billion investment announced in July. According to Livemint, the company is evaluating a potential investment in Texas and is working to expand capacity to meet customer requirements. CEO Wei emphasized the company's competitive approach, stating "We have no intention to leave food on the table for others, and we want to capture every piece of business possible." The expansion comes as semiconductor manufacturers seek to meet growing AI demand while navigating rising costs and uncertainty over future spending.
Despite record results, TSMC is taking a cautious approach to business planning for 2027, citing economic uncertainty and rising component prices. As reported by Livemint, CEO Wei noted that "consumer and price-sensitive end-markets are being challenged due to the impact of rising component prices and macroeconomic uncertainties." The company expects fourth-quarter revenue of $52.3 billion to $54.3 billion and maintains its 2026 capital expenditure forecast of $60 billion to $64 billion. TSMC raised its 2026 spending plans in July, up from an earlier projection of $52 billion to $56 billion, reflecting its expanding investment plans amid continued AI infrastructure investments.
Signs of sustained demand across the semiconductor supply chain have eased concerns about a slowdown in AI spending, with ASML reporting that customers are already looking to place orders for 2029 and 2030. According to Livemint, TSMC shares have gained 57% so far this year, broadly tracking the rally in Taiwan's equity market, whose benchmark index has advanced 62% over the same period. The company is planning to raise wafer prices 3% to 6% from January 2027, with steeper increases for its most advanced processes, while maintaining its position at the center of the global AI hardware supply chain.
