Taiwan Semiconductor Manufacturing Co. keeps running into the same problem: customers want more chips than it can comfortably make. On October 15, 2026, the company reported its sixth consecutive quarter of record net profit.
CEO C.C. Wei described demand as “extremely robust” and said he sees no sign of the AI trend slowing.
The numbers behind the record
TSMC’s third-quarter net profit came in at NT$763.1 billion, or approximately $23.6 billion. That is a 68.7% jump from the same period a year earlier.
The result beat analyst expectations by a wide margin. It also extended a streak: this was the 11th straight quarter of year-over-year profit growth.
Revenue climbed to NT$1.494 trillion, or about $46.7 billion. That works out to a 50.9% increase year-over-year and a 17.6% gain from the previous quarter.
Advanced process technologies accounted for 79% of total wafer revenue in the quarter.
Guidance goes up, spending holds steady
Management lifted its full-year 2026 revenue growth outlook to about 44% in US dollar terms. The previous forecast called for growth “slightly above 40%.”
Fourth-quarter guidance is even more aggressive. TSMC expects revenue between $52.3 billion and $54.3 billion, which implies year-over-year growth of roughly 55% to 61%.
Capital expenditure guidance for 2026 stayed unchanged at $60 billion to $64 billion.
TSMC has also deepened its bet on American manufacturing. Its total commitment to US facilities now stands at $265 billion, including an additional $100 billion pledged for its Arizona operations.
Background: from contract manufacturer to AI bottleneck
TSMC does not design its own chips. It manufactures them for other companies, which makes it the foundry behind a large share of the world’s most advanced processors.
Investors have noticed. TSMC’s market capitalization sits near $2 trillion, roughly double that of rival Samsung Electronics.
The stock has climbed nearly 60% in 2026 alone.
What this means for the chip sector and beyond
There are caveats worth watching. TSMC flagged ongoing macroeconomic uncertainties that are shaping how it approaches 2027 planning.
The company specifically pointed to consumer-sensitive segments, noting that the parts of the business tied to smartphones and other everyday electronics could be more exposed if household spending weakens.
The next checkpoints are straightforward. Watch whether fourth-quarter revenue lands within the $52.3 billion to $54.3 billion range, how 2027 capex plans take shape, and whether consumer-facing demand holds up alongside the AI segment.
Disclosure: This article was edited by Diego Almada Lopez. For more information on how we create and review content, see our Editorial Policy.