TSMC Reports Third-quarter Revenue

Taiwan Semiconductor Manufacturing Company has reported a substantial rise in third-quarter revenue, driven by surging demand for artificial intelligence (AI) chips. The company’s revenue for the July-September period surged 36.5 per cent year-on-year, totalling USD 23.62 billion, significantly surpassing both market expectations and its own forecasts.

TSMC, who is a key supplier to tech giants like Apple and Nvidia, has maintained its industry-leading position by capitalising on the rapidly increasing demand for AI technologies. This shift has helped it offset the downturn in pandemic-driven consumer electronics demand. On its July earnings call, TSMC had forecast third-quarter revenue in the range of USD 22.4 billion to USD 23.2 billion, but actual revenue exceeded even the high end of this guidance, reflecting robust AI-related orders.

For September alone, TSMC reported revenue of USD 7.83 billion, marking a 39.6 per cent increase compared to the same month last year. The company’s Taipei-listed stock has surged by 72 per cent this year, far outpacing the broader market’s 26 per cent rise. Shares closed up 1 per cent on Wednesday, ahead of the revenue declaration.

While the company has not yet provided detailed revenue breakdowns, TSMC is expected to update its earnings outlook and offer further insights into AI demand on its next earnings call scheduled for 17 October.

TSMC's growth contrasts sharply with pandemic-related slowdowns in the broader electronics market. The company's ability to maintain high growth despite cyclical industry fluctuations show the strength of its AI-focused strategy.