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TSMC's Q3 Profit Soars 39.1% to a Record High, Exceeding Market Forecasts

Thursday, October 16, 2025 at 05:47 AM

Taiwan Semiconductor Manufacturing Company (TSMC) announced a record-breaking profit for the third quarter, which saw a 39.1% jump compared to the previous year, surpassing analyst expectations. This indicates strong demand and favorable pricing in the advanced semiconductor manufacturing sector.

Context

Taiwan’s TSMC reported record-breaking Q3 2025 results on October 16, with net profit soaring 39.1% year-over-year to NT$452.3 billion ($14.8 billion), handily beating market forecasts. Revenue also climbed 30.3% to NT$989.9 billion, driven by relentless demand for advanced AI and high-performance computing chips. The results, fueled by strong utilization of its 3nm and 5nm nodes for AI and premium smartphones, reinforce the company's conviction in the AI megatrend and an upgraded full-year revenue growth forecast to the mid-30% range. The blowout earnings from the world's largest foundry underscore the intense, ongoing demand for leading-edge semiconductor capacity. This dynamic presents a mixed outlook for peers like China's Hua Hong Semiconductor. While tight supply may grant Hua Hong near-term pricing power on its mature-node products, TSMC's accelerating dominance and profitability in advanced technologies create a powerful incentive for customers to migrate to newer process nodes that Hua Hong cannot yet offer, posing a significant long-term competitive risk.

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