Taiwan Semiconductor Manufacturing Co (TSMC), the world's largest contract chipmaker, reported record third-quarter revenue of T$1.49 trillion ($46.71 billion), representing a 50% year-on-year increase. According to reports from Reuters, the result exceeded the T$1.46 trillion forecast from an LSEG SmartEstimate based on estimates from 19 analysts. The company had forecast third-quarter revenue of between $44.6 billion and $45.8 billion at its July earnings call, with revenue guidance provided in U.S. dollars rather than Taiwan dollars. Revenue in the July-September quarter came in at T$1.49 trillion, compared with T$989.92 billion in the year-ago period, as reported by Reuters calculations.
September revenue alone increased 54.6% from a year earlier to T$511.86 billion, underscoring the strength of demand for advanced chips used in AI-related applications. As reported by Reuters, TSMC is a major supplier to companies including Nvidia and Apple, and has emerged as one of the biggest beneficiaries of the global investment boom in AI infrastructure. The company's latest revenue figures come as chipmakers across the region see accelerating demand for high-performance computing and memory products, with the AI-driven semiconductor cycle showing continued strength.
TSMC shares listed in Taipei closed 1.35% lower on Thursday ahead of the revenue announcement, while the broader market declined 1%. According to Reuters, the company is expected to report third-quarter net profit of T$740.8 billion, representing a 64% increase from a year earlier. TSMC is scheduled to report its full third-quarter earnings next Thursday, when investors will get a detailed update on its outlook for the current quarter, AI-related demand and capital expenditure plans for the remainder of the year. The company, which is Asia's most valuable publicly listed company with a market capitalisation of $2.1 trillion, did not provide any details or forward guidance in its brief revenue statement.
The strong performance reflects broader strength in the AI-driven semiconductor cycle across the region. As reported by Reuters, Samsung Electronics earlier on Thursday also pointed to the strength of the AI-driven semiconductor cycle, forecasting quarterly operating profit of more than 100 trillion won for the first time. Samsung estimated that third-quarter operating profit would rise nearly nine-fold from a year earlier, helped by strong memory-chip demand. The booming demand for AI chips is driving strong memory sales across the region, with TSMC positioned as a key beneficiary of this technological transformation.
