TSMC's Q3 net profit hits record as gross margin beats forecast

Taipei, Oct. 16 (CNA) Taiwan Semiconductor Manufacturing Co. (TSMC) on Thursday reported a record profit in the third quarter of this year, up more than 39 percent from a year earlier, as strong global demand for its advanced processes lifted its gross margin above the company's forecast.

Data released by the world's largest contract chipmaker showed it earned NT$452.30 billion (US$14.78 billion) in net profit in the July-September period, up 39.1 percent year-on-year and 13.6 percent from the previous quarter.

Earnings per share stood at NT$17.44 in the third quarter, compared with NT$12.54 in the same period last year and NT$15.36 in the second quarter.

TSMC's consolidated sales reached US$33.1 billion, exceeding its forecast range of US$31.8 billion to US$33.0 billion.

In Taiwan dollar terms, third-quarter sales hit a record NT$989.92 billion, up 30.3 percent from a year earlier and 6.0 percent from the previous quarter.

Driven by strong global demand, TSMC's gross margin -- the difference between revenue and cost of goods sold -- rose to 59.5 percent, surpassing its estimated range of 55.5-57.5 percent. The margin was up 1.7 percentage points year-on-year and 0.9 percentage points quarter-on-quarter.

The company said its 3-nanometer process, the latest technology to enter commercial production, accounted for 23 percent of total sales in the third quarter, while the 5nm and 7nm processes represented 37 percent and 14 percent, respectively.

Overall, advanced processes -- which command higher profit margins -- continued to drive sales, making up 74 percent of TSMC's total revenue during the period.

In the first nine months of 2025, TSMC's net profit rose 51.8 percent from a year earlier to NT$1.21 trillion, with EPS at NT$46.75. Consolidated sales totaled NT$2.76 trillion in the nine months, up 36.4 percent, and the company's gross margin averaged 59 percent, up 4.1 percentage points year-on-year.