TSMC Reports Strong Q3 Revenue Amid AI Demand

TAIPEI (Reuters) – TSMC, the world's largest contract chipmaker, announced on Wednesday that its third-quarter revenue exceeded market expectations, capitalizing on increased demand for artificial intelligence (AI) technologies.

Taiwan Semiconductor Manufacturing Co, which serves major clients such as Apple and Nvidia, has successfully navigated the decline in pandemic-driven demand thanks to its AI initiatives.

In the July-September quarter, TSMC's revenue reached T$759.69 billion (approximately $23.62 billion), surpassing the LSEG SmartEstimate of T$750.36 billion ($23.33 billion) provided by 23 analysts. This marks a substantial year-on-year growth of 36.5%, compared to $17.3 billion during the same period last year.

While TSMC typically provides monthly revenue figures only in Taiwanese dollars, it presents quarterly revenues and outlooks in U.S. dollars. On its last earnings call in July, TSMC had forecasted third-quarter revenue to fall between $22.4 billion and $23.2 billion.

For September, TSMC reported a remarkable revenue increase of 39.6% year-on-year, totaling T$251.87 billion. However, specific details were not included in the brief revenue statement.

TSMC plans to disclose full third-quarter earnings on October 17, along with an updated outlook.

So far this year, the company’s stock listed in Taipei has surged by 72%, significantly outperforming the broader market's 26% gain. On Wednesday, prior to the revenue disclosure, TSMC's stock closed up 1%.

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