October 15th 2026, 7:04 AM
TSMC Sees Surge in Q4 Revenue Amid AI and Computing Boom
Key Summary
Taiwan Semiconductor Manufacturing Company (TSMC) has forecasted a record-breaking revenue surge of up to 61% in Q4 2026, driven by growing demand for custom AI chips. The company's revenue growth reflects the increasing adoption of AI technology across various industries, with TSMC's 2nm technology contributing to the growth. TSMC's sixth straight quarter of record profits highlights the growing demand for AI chips in the market.
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The Numbers Behind the Record
TSMC reported third-quarter revenue of NT$1,494.24 billion ($46.72 billion) on October 15, 2026. That figure was up 50.9% from the same period last year and 17.6% higher than the previous quarter.Looking Ahead
Management guided fourth-quarter revenue to a range of $52.3 billion to $54.3 billion. The comparable figure for Q4 2025 was $33.73 billion.The 2nm Story and the AI Tailwind
In the third quarter, 2nm contributed 8% of TSMC's wafer revenue. In the second quarter, that share was just 3%. The broader mix leans heavily toward the leading edge. Advanced technologies, defined as 7nm and below, made up 79% of total wafer revenue in Q3.What This Means for Investors and the Chip Sector
A forecast of up to 61% revenue growth tells investors those orders are still flowing in at scale. Gross margins of 66.4% suggest TSMC is not discounting to win business. The 2nm ramp is a key thing to watch over the coming quarters. If its share of wafer revenue keeps climbing at anything close to the pace seen between Q2 and Q3, it could become a major driver of results in 2027.- \1\1\1\1\1\1\1\1
A photo of a TSMC manufacturing facility, with a focus on the advanced 2nm technology being used to produce custom AI chips.
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