Taiwan Semiconductor Manufacturing Co. (TSMC) reported on October 8 that its third-quarter revenue reached a record NT$1.49 trillion (about US$46.7 billion), topping the high end of its own forecast as September sales held above NT$500 billion for a second straight month.
The world's leading contract chipmaker said September revenue of NT$511.86 billion was 0.6% lower than August and 54.6% higher than a year earlier. Revenue for the first nine months of 2026 totaled NT$3.9 trillion, up 41.1% from the same period in 2025, according to the company's monthly report.
September Revenue Slips 0.6% From August Record
The small monthly decline ended a run of four consecutive monthly records that began in May, when sales were about NT$417 billion. Revenue then rose to NT$442.68 billion in June and NT$467.58 billion in July, before hitting an all-time high of NT$514.81 billion in August, the first month above NT$500 billion.
September's NT$511.86 billion was the second month at that level, compared with NT$330.98 billion in September 2025. The figures suggest that demand for AI chips, high-performance computing, advanced process technology and advanced packaging has not cooled.
Third-Quarter Revenue Tops Guidance Ceiling By NT$28.6 Billion
Adding up July, August and September, third-quarter revenue came to about NT$1.494 trillion, up 17.6% from NT$1.27 trillion in the second quarter. Bloomberg News, using its own calculations, put the quarterly figure at NT$1.49 trillion, a 51% increase from a year earlier.
At its July 16 earnings conference, TSMC guided third-quarter revenue of US$44.6 billion to US$45.8 billion, based on an exchange rate of NT$32 to the U.S. dollar. That converts to roughly NT$1.427 trillion to NT$1.466 trillion, which means actual sales finished about NT$28.6 billion above the top of the range. Bloomberg reported that analysts had expected NT$1.46 trillion on average.
The company also forecast a gross margin of 65% to 67% and an operating margin of 56% to 58% for the quarter. Senior Vice President and Chief Financial Officer Wendell Huang said at the time that continued demand for leading-edge processes, including a steep ramp-up of 2-nanometer technology, would support the period.
Year-to-Date Sales Growth Widens To 41.1%
Revenue for January through September totaled NT$3,898.73 billion, compared with NT$2,762.96 billion a year earlier. Cumulative growth stood at 39.3% through August, so September nudged the year-to-date gain higher even without a new monthly record.
Analysts Point To Shipment Timing, Not Weaker Demand
Market analysts say the slight September dip most likely reflects shifts in when some customers took delivery, rather than a reversal in demand. They expect revenue to strengthen again from October as shipments tied to Apple's new devices begin and the consumer electronics peak season gets under way.
The question for investors has therefore shifted from whether TSMC would beat its third-quarter forecast to whether monthly sales can stay above NT$500 billion through the fourth quarter.
Shares Closed At NT$2,550 Ahead Of The Release
TSMC shares, listed in Taipei under the ticker 2330 and in New York as TSM, ended the October 8 session at NT$2,550, down NT$35, or 1.35%. The company's monthly revenue figures are typically published after the Taiwan market closes, so the day's trading preceded the numbers. Bloomberg noted that the stock hit a record earlier this month.
AMD, Samsung And Hon Hai Send Similar Signals
Bloomberg reported that TSMC's results reinforce the outlook for AI demand at a time when investors are weighing rising debt levels linked to the technology's buildout. Earlier this week, AMD chief executive Lisa Su said she expects chip demand to stay sharply higher over the next few years, Samsung Electronics reported an almost nine-fold jump in operating profit, and AI server assembler Hon Hai Precision Industry, also known as Foxconn, beat quarterly sales estimates.
October 15 Earnings Call Will Test The Fourth-Quarter Outlook
TSMC is scheduled to hold its third-quarter earnings conference on October 15, where investors will look for guidance on fourth-quarter demand and the full-year outlook. Analysts are expected to press management on whether margins can stay near the top of guidance as 2-nanometer volume rises, and on supply and demand for advanced packaging such as CoWoS.
Capital spending, the cost of overseas fabs and currency swings are also likely to feature in the discussion, given their potential effect on profitability.
Social Media Links & Editor Tag - Penny
