Business · Companies · 1 hr ago
TSMC expected to post record quarterly profit as AI chip demand surges
Taiwan Semiconductor Manufacturing Company, or TSMC, is a major chipmaker that produces processors for companies including Nvidia and Apple.
Analysts expect its third-quarter net profit to rise 65% from a year earlier to 746.3 billion Taiwan dollars, about $23.4 billion.
The forecast follows record quarterly revenue, which rose 50% year on year, as demand grows for chips and advanced packaging used in AI systems.
TSMC has raised its planned spending this year to $60 billion to $64 billion to expand capacity.
It is building production capacity in Arizona and is also weighing possible investment options in Texas, though analysts differ on how soon a Texas expansion might happen.
The company is due to release its results on Thursday and hold a call covering its fourth-quarter outlook and updated annual guidance.
Its plans matter because continued investment in AI infrastructure could sustain demand for the advanced chips TSMC makes.
TSMC is expected to report a record third-quarter net profit of 746.3 billion Taiwan dollars, up 65% from a year earlier, according to analyst estimates.
The forecast reflects surging demand for high-performance chips used in artificial intelligence infrastructure.
TSMC’s third-quarter revenue, reported last week, rose 50% year on year to a record and beat market expectations.
Analysts expect the company to discuss its fourth-quarter outlook and updated annual guidance on its earnings call.
The company is also assessing possible expansion in Texas, though one analyst described it as a long-term option rather than an immediate priority.
- Who
- Taiwan Semiconductor Manufacturing Company (TSMC).
- What
- Analysts expect it to report record third-quarter net profit of 746.3 billion Taiwan dollars, up 65% year on year.
- When
- The results are expected on Thursday; the article was published on October 12, 2026.
- Where
- TSMC is based in Taiwan; its potential expansion plans discussed in the article include Texas and Arizona.
- Why
- Demand for high-performance chips used in AI models, data centres and cloud infrastructure is surging.
Morgan Stanley analyst Charlie Chan
Morningstar analyst Phelix Lee
Texas expansion timing
Morgan Stanley analyst Charlie Chan
Chan says Arizona’s space limits could become significant within five years, putting Texas on the table.
Morningstar analyst Phelix Lee
Lee says Arizona’s planned factories are not yet complete, so Texas is not an urgent priority and may be a longer-term option for the 2030s and 2040s.
No direct quotes in the coverage so far.
TSMC raised its capital expenditure forecast for the year from 52–56 billion dollars to 60–64 billion dollars.
TSMC reported third-quarter revenue up 50% year on year, setting a record and exceeding market expectations.
Reuters reported that TSMC was considering potential investment options in Texas.
TSMC is expected to report its third-quarter results and discuss its fourth-quarter outlook and updated annual guidance.
- Expected third-quarter net profit
- 746.3 billion Taiwan dollars, about 23.4 billion US dollars
- Expected profit growth
- 65% year on year
- Third-quarter revenue growth
- 50% year on year
- Capital expenditure forecast
- 60–64 billion dollars
- TSMC shares
- Up 63% since the start of the year
- Arizona investment program
- 265 billion dollars, including an additional 100 billion dollar commitment announced in July
Sources
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