Taiwan Semiconductor Manufacturing Company (TSMC) reported a 68.7% year-on-year increase in third-quarter net profit Thursday, posting record earnings for a sixth consecutive quarter amid strong global demand for artificial intelligence chips.
Net profit reached 763.1 billion New Taiwan dollars ($23.5 billion), exceeding market forecasts, according to the company’s financial report.
Revenue totaled $46.36 billion, also surpassing market expectations.
The world’s largest contract chipmaker recorded an operating profit margin of 58.7%, beating the upper end of its guidance range of 58%, as demand for advanced semiconductors supported earnings.
High-performance computing accounted for 68% of quarterly revenue, making it the company’s largest business platform, followed by smartphones at 21%.
Chips manufactured using its 3-nanometer technology contributed 33% of revenue, the largest share among its production technologies, followed by 5-nanometer and 7-nanometer chips.
The automotive business recorded the fastest quarterly growth among its platforms, with revenue rising 23% from the previous three months.
Free cash flow climbed to $14.7 billion from $4.3 billion a year earlier.
The results come as TSMC pursues an expansion of its US manufacturing operations. During its second-quarter earnings announcement in July, the company outlined plans that included total planned investment of $265 billion in Arizona.