TSMC boosts Q3 revenue by 40.8% due to AI growth

TSMC’s revenues are exploding thanks to the growth of AI

TSMC has announced a Q3 revenue of NT$989.92 billion, translating to $33.10 billion (US). In US dollar terms, TSMC’s Q3 revenues have increased by 40.8% compared to last year, which is a staggering level of growth for the semiconductor company.

What’s worth noting here is that TSMC’s growth in US dollar terms is somewhat misleading. When using Taiwan’s currency, the New Taiwan Dollar, TSMC’s revenue growth is 30.3%. The weakening US dollar has inflated TSMC’s growth after currency conversions. The US dollar doesn’t buy as many Taiwanese dollars as it used to. Even so, 30+% year-over-year growth is HUGE.

Overall, TSMC’s net profit margin was 45.7%, with 74% of the company’s revenues coming from “advanced technologies”. These “advanced technologies” are 7-nanometer and newer silicon. 3-nanometer accounted for 23% of total revenue, 5nm accounted for 37%, and 7nm accounted for 14%. Next year, TSMC plans to start shipping 2nm products, and 3nm will see higher utilisation.

Next quarter, TSMC expects its revenue to be between $32.2 billion and $33.4 billion. This assumes a USD to NTD exchange rate of 1 USD to 30.6 NTD. Gross profit margin is expected to be between 59-61% and operating profit margin is expected to be between 49-51%.

Next year will be a big year for TSMC. Nvidia’s launch of 3nm Rubin series AI accelerators will boost TSMC’s 3nm utilisation. AMD also plans to release 2nm Ryzen and EPYC series CPUs in 2026. Additionally, AMD has confirmed that its Instinct MI450 is a TSMC 2nm product.

You can join the discussion on TSMC’s insane growth on the OC3D Forums.