Business · Companies · 1 hr ago
TSMC expected to post sixth straight quarter of record profit as AI demand grows
Taiwan Semiconductor Manufacturing Co., or TSMC, makes advanced chips used in products including AI systems.
Analysts expect its third-quarter net profit to rise 65% from a year earlier to T$746.3 billion, which would be a sixth straight quarterly record.
The company has already reported that its third-quarter revenue rose 50% to a record.
Strong demand for AI chips and the technology used to package them has helped drive its growth.
TSMC is a major supplier to Nvidia and Apple, and its results matter to the wider technology industry.
On Thursday, the company is scheduled to discuss its results and provide guidance for the fourth quarter and full year.
Analysts also expect questions about possible expansion in Texas, which TSMC is evaluating.
TSMC is expected to post a sixth consecutive quarter of record profit, driven by strong demand for AI chips and related manufacturing capacity.
Analysts forecast third-quarter net profit of T$746.3 billion, up 65% from a year earlier.
The company said third-quarter revenue rose 50% year on year to a record.
TSMC is expected to provide fourth-quarter and full-year guidance during an earnings call scheduled for Thursday.
Analysts differ on how urgently TSMC needs to expand into Texas.
- Who
- Taiwan Semiconductor Manufacturing Co. (TSMC), the world’s largest manufacturer of advanced AI chips.
- What
- It is expected to report a sixth straight quarter of record profit. Analysts forecast net profit of T$746.3 billion.
- When
- The results are expected on Thursday; the article was published on October 12, 2026.
- Where
- TSMC is based in Taiwan. Its possible expansion plans under discussion include Texas and Arizona in the United States.
- Why
- Strong demand for AI chipmaking capacity and advanced chip packaging is driving the expected profit growth.
Charlie Chan, Morgan Stanley
Phelix Lee, Morningstar
Urgency of Texas expansion
Charlie Chan, Morgan Stanley
Chan said a Texas expansion could become necessary because of growing customer demand and limited space at TSMC’s Arizona site in five years.
Phelix Lee, Morningstar
Lee saw limited urgency because some planned Arizona factories have yet to be built.
Potential role of Texas
Charlie Chan, Morgan Stanley
Chan said expansion could become necessary as demand grows.
Phelix Lee, Morningstar
Lee described Texas as a possible location for a longer-term expansion in the 2030s or 2040s, and said it may help anticipate potential US trade and other policies.
Texas is a good location for a 2030s or 2040s expansion grand plan, given its long history of semiconductor ecosystem and talent pool.
It may be a dangling carrot to preempt potential US trade and other policies.
TSMC raised its capital expenditure forecast for the year to between $60 billion and $64 billion.
Reuters reported that TSMC was evaluating a potential investment in Texas.
Morgan Stanley analyst Charlie Chan said he expected TSMC to raise its full-year revenue growth forecast to the low-to-mid 40% range.
TSMC reported that third-quarter revenue rose 50% year on year to a new record.
The article reported analysts’ expectation that TSMC would post a sixth consecutive quarter of record profit.
- Expected third-quarter net profit
- T$746.3 billion, a forecast 65% increase
- Third-quarter revenue
- Up 50% year on year to a record
- Earnings call
- Thursday at 0600 GMT
- US factory investment
- $265 billion planned for Arizona, including an additional $100 billion unveiled in July
- TSMC market capitalisation
- Around $2.1 trillion
Sources
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