Archive · 12 Oct 2026
TSMC Expected Sixth Record-Profit Quarter as AI Demand Surges
TSMC makes advanced chips used in many technologies, including artificial intelligence.
Companies are spending heavily on AI infrastructure, increasing demand for TSMC’s chips and packaging services.
Analysts expect TSMC’s third-quarter profit to rise 65% from a year earlier.
If the forecast is right, it would be the company’s sixth record-profit quarter in a row.
TSMC has already reported that its third-quarter revenue rose 50% to a record.
The company is also investing in chip factories in Arizona.
Analysts disagree about whether it needs to expand into Texas soon.
TSMC is scheduled to discuss its outlook on an earnings call.
Analysts forecast TSMC’s third-quarter net profit will rise 65% to T$746.3 billion.
A result above T$706.56 billion would set a quarterly net income record and mark 11 straight quarters of profit growth.
TSMC reported third-quarter revenue up 50% year on year, reaching a record and beating market forecasts.
Analysts cited demand for AI chipmaking capacity, advanced packaging and 3-nanometre chips as key growth drivers.
Analysts differed on the urgency of a possible Texas expansion, while TSMC is investing $265 billion in Arizona.
- Who
- Taiwan Semiconductor Manufacturing Co. (TSMC), the world’s largest manufacturer of advanced AI chips.
- What
- Analysts expect record third-quarter profit, supported by AI-related demand; TSMC reported record third-quarter revenue.
- When
- The report is dated October 12; the earnings call was scheduled for Thursday at 0600 GMT.
- Where
- Taipei, Taiwan; the company’s discussed expansion plans include Arizona and a potential investment in Texas.
- Why
- Strong demand for AI chips, chipmaking capacity and advanced packaging is driving growth.
Expansion seen as needed
Expansion seen as not urgent
Potential Texas investment
Expansion seen as needed
Morgan Stanley analyst Charlie Chan said expansion in Texas could become necessary as customer demand grows and space at TSMC’s Arizona site becomes limited in about five years.
Expansion seen as not urgent
Morningstar analyst Phelix Lee saw limited urgency because some planned Arizona factories have yet to be built; he described Texas as a possible longer-term expansion location.
- Forecast third-quarter net profit
- T$746.3 billion, up 65% year on year, according to an LSEG SmartEstimate based on 16 analysts.
- Record-profit threshold
- A result above T$706.56 billion would be TSMC’s highest-ever quarterly net income.
- Third-quarter revenue
- Up 50% year on year to a record, according to TSMC.
- Earnings call
- Scheduled for Thursday at 0600 GMT to discuss fourth-quarter and updated full-year guidance.
- Arizona investment
- TSMC is investing $265 billion to build chip factories in Arizona, including an additional $100 billion announced in July.
- Capital expenditure outlook
- TSMC raised its forecast for this year to $60 billion–$64 billion, from a previous range of $52 billion–$56 billion.
- Share performance
- TSMC’s Taipei-listed shares had gained 63% so far that year, compared with a 69% rise for the broader market.