Taiwan Semiconductor Manufacturing Company Ltd. (TSMC), the world’s leading chip foundry, has reported stellar third-quarter earnings, exceeding analyst forecasts on the back of robust demand for its advanced processor node technologies. These cutting-edge chips are powering the surge in artificial intelligence (AI) applications, highlighting the crucial role TSMC plays in this rapidly evolving technology landscape.
TSMC, headquartered in Hsinchu, Taiwan, announced consolidated third-quarter revenue of NT$759.69 billion ($23.50 billion), marking a substantial 39% year-over-year increase. This impressive growth also translates to a 12.8% sequential expansion. The company’s revenue surpassed the Bloomberg consensus of NT$748 billion and exceeded its own guidance of $22.4 billion to $23.2 billion.
Beyond revenue, TSMC’s net income and earnings per share also soared by a remarkable 54.2%, reaching NT$325.26 billion and NT$12.54 per share, respectively. This outperformance surpassed analyst expectations, with LSEG estimates projecting a net profit of NT$300.2 billion. The company’s success is directly tied to the increasing adoption of its advanced technologies, particularly the 3nm, 5nm, and 7nm nodes, which are instrumental in driving AI development.
TSMC’s 3nm technology, the most advanced node currently in production, accounted for a significant 20% of total revenue in the third quarter. The 5nm and 7nm technologies followed closely, contributing 32% and 17% respectively. These advanced technologies collectively made up 69% of TSMC’s total wafer revenue, demonstrating a clear shift towards higher-performance chips powering the AI revolution. This is a notable increase from the 67% share held by these technologies in the previous quarter.
The AI euphoria has positively impacted companies heavily involved in this sector, and TSMC is no exception. The Taiwanese company’s American Depositary Receipts (ADRs) listed on the NYSE have surged over 82% year-to-date, reflecting investor confidence in TSMC’s role in the future of AI. TSMC’s stock closed Wednesday’s session up 0.19% at $187.48, further highlighting its strong market performance.
TSMC’s exceptional third-quarter results underscore the company’s leadership in the semiconductor industry. The company’s ability to consistently innovate and provide advanced technologies is driving the growth of the AI sector. As AI continues its rapid development, TSMC is poised to remain a central player, shaping the future of computing and technology.