TSMC posts sixth straight record quarter as AI chip demand strains capacity
TSMC's third-quarter net profit rose 68.7% year-on-year to NT$763.1 billion, with revenue up 50.9%, as capacity remains tight.
TSMC reported a sixth consecutive quarter of record net profit on October 15, 2026, with third-quarter net profit up 68.7% year-on-year to NT$763.1 billion. Revenue for the quarter rose 50.9% to NT$1.4942 trillion, according to digitaltoday.co.kr.
Sajiv Dalal, CEO of TSMC North America, said he receives at least 10 calls a day about securing wafer production capacity. The company is expanding production facilities in Taiwan, Japan and the United States, with its US Arizona investment commitment reaching about $265 billion.
Mizuho analyst Jordan Klein warned that TSMC's production constraints could burden large-scale AI infrastructure investment plans if AI compute demand keeps growing at the current pace over the next 12 to 18 months.
Industry watchers suggest Samsung Electronics and Intel could use TSMC's capacity shortage as an opportunity as customers seek alternative foundries for supply chain diversification and pricing leverage.