Taiwan Semiconductor Manufacturing Company (TSMC) on October 15 reported 50.90 per cent year-on-year (YoY) growth in consolidated revenue at NT$1,494.24 billion for the third quarter ended September 30, 2026. Net income advanced 68.70 per cent YoY to NT$763.06 billion. Compared to second quarter 2026, third quarter results showed a 17.6 per cent rise in revenue and an 8 per cent increase in net income.
In dollars terms, the third quarter revenue came at $46.72 billion, up 41.2% YoY and 16.2% QoQ. Gross margin for the quarter was 66.4%, operating margin was 58.7%, and net profit margin was 51.1%. In the third quarter, shipments of 2-nanometer accounted for 8% of total wafer revenue; 3-nanometer accounted for 33%; 5-nanometer accounted for 28%; and 7-nanometer accounted for 10%. Advanced technologies, defined as 7-nanometer and more advanced technologies, accounted for 79% of total wafer revenue.
“Our business in the third quarter was supported by strong demand for our leading-edge process technologies,” said Wendell Huang, Senior VP and Chief Financial Officer of TSMC. “Moving into fourth quarter 2026, we expect our business to be supported by continued strong demand for our leading-edge process technologies, including the steep ramp-up of our 2-nanometer technology.”
Based on the company’s current business outlook, management expects revenue is likely to be in between $52.3 billion and $54.30 billion for fourth quarter ended 2026. Gross profit margin is expected to be between 65 per cent and 67 per cent. Operating profit margin is expected to be between 56.5% and 58.5%.
TSMC pioneered the pure-play foundry business model when it was founded in 1987, and has been the world’s leading dedicated semiconductor foundry ever since. The Company supports a thriving ecosystem of global customers and partners with the industry’s leading process technologies and portfolio of design enablement solutions to unleash innovation for the global semiconductor industry. With global operations spanning Asia, Europe, and North America, TSMC serves as a committed corporate citizen around the world.
TSMC deployed 305 distinct process technologies, and manufactured 12,682 products for 534 customers in 2025 by providing the broadest range of advanced, specialty and advanced packaging technology services. The Company is headquartered in Hsinchu, Taiwan.
