The TSMC logo is displayed on a wall in Hsinchu, Taiwan on April 15, 2025.
Anne Wang | Reuters
Taiwan Semiconductor Manufacturing Co., Ltd.. on Thursday reported a record third-quarter profit that beat expectations, driven by weakening global demand for AI chips.
Below are TSMC’s third quarter results for LSEG SmartEstimates. We focus on more consistently accurate analyst forecasts.
Revenue: NT$1.49 trillion ($46.36 billion) vs. NT$1.47 trillion Net profit: NT$763.1 billion vs. NT$746.34 billion
The world’s largest contract chip maker posted a record net profit for the sixth consecutive quarter, reporting a 68.7% year-over-year increase in the reported quarter.
TSMC’s third-quarter operating margin was 58.7%, above the 58% high end of its guidance range and demonstrating the pricing power the company enjoys as the AI boom drives demand for semiconductors.
By technology, 3-nanometer chips accounted for the largest share of Q3 revenue at 33%, followed by 5-nanometer and 7-nanometer chips.
By platform, high-performance computing accounted for the largest share of revenue at 68%, followed by smartphones at 21%. Automotive, on the other hand, was the fastest growing segment quarter-over-quarter, with a growth rate of 23%.
The company’s free cash flow surged to NT$476.56 billion in the third quarter from NT$139.38 billion a year ago.
The TSMC Board of Directors approved a cash dividend of NT$7.00 for the second quarter. In its second-quarter earnings call in July, TSMC outlined plans to expand its U.S. manufacturing footprint, including plans to invest a total of $265 billion in Arizona.
The company is also reportedly evaluating potential investments in Texas and considering expansion outside of Arizona to further strengthen its manufacturing presence in the United States.
