[Taiwan Chip Column]TSMC Achieves Record Q3 Revenue Amid Explosive AI Demand... 2nm Era Approaches

Sales Surge 30% on Explosive AI and HPC Demand
Orders Rise from Customers Like Apple and Nvidia
Successful Trial Production at Kaohsiung 2nm Plant

Taiwanese foundry (semiconductor contract manufacturing) company TSMC has achieved its highest-ever quarterly performance in the third quarter of this year, further solidifying its position as the world's leading foundry. This record was driven by an explosive increase in demand for artificial intelligence (AI) and a surge in global customer orders. TSMC is accelerating its expansion of supply capacity by bringing forward the operation of new production facilities, including those in Kaohsiung.

On October 13, local media outlets such as Taiwan Economic Daily News reported that TSMC announced on October 9 that its September revenue reached 330.98 billion New Taiwan dollars, marking a 31.4% year-on-year increase and surpassing expectations. Third-quarter revenue hit a record high of 989.918 billion New Taiwan dollars. Revenue for the first three quarters of this year totaled approximately 2.7629 trillion New Taiwan dollars, representing a 36.4% annual increase and also setting a new record.

TSMC, Yonhap News Agency·Reuters.

According to TSMC, this rebound in performance appears to be driven by strong shipments of advanced process technologies amid rising demand for AI and high-performance computing (HPC). Lee Fang-Kuo, CEO of Uni-President Investment Consulting, predicted further growth in the third quarter, stating, "TSMC is a beneficiary of Nvidia's cross-investment with OpenAI and the partnership between OpenAI and AMD." He emphasized that the traditional peak season effect will continue into the fourth quarter, supporting sustained growth in operating performance. Additionally, increased silicon usage in Apple's new smartphones is also contributing to higher demand.

As a result, TSMC's stock price is approaching 1,500 New Taiwan dollars. On October 9, TSMC shares hit an intraday high of 1,455 New Taiwan dollars, up 25 New Taiwan dollars (1.77%), setting a new closing record. Its market capitalization reached 37.34 trillion New Taiwan dollars. TSMC is scheduled to hold a legal briefing on October 16 to announce its third-quarter financial report and provide guidance for the fourth quarter of 2025.

With rapid advances in AI and high-performance computing applications leading to a shortage of production capacity, TSMC has begun expanding its advanced process capabilities to respond. The company plans to begin mass production of cutting-edge 2-nanometer (nm) products in the fourth quarter. On October 6, the Kaohsiung City Government announced that the initial production of 12-inch nano wafers was successfully completed during trial runs at TSMC's Kaohsiung F22 plant. This means that 2nm wafer production at TSMC's Kaohsiung plant has been brought forward ahead of schedule. According to the industry, TSMC has secured 2nm process orders from major customers including Apple, Nvidia, Qualcomm, AMD, and MediaTek. The 2nm process is expected to deliver 10-15% better performance and reduce power consumption by 25-30% compared to the currently mass-produced 3nm process.

Currently, TSMC's 2nm production bases are located in Baoshan within the Hsinchu Science Park and in Kaohsiung. The Baoshan site in Hsinchu Science Park can be expanded in four phases. The Kaohsiung City Government announced that TSMC plans to expand five factories at its Nanzi site in the future, further developing Kaohsiung's semiconductor industry structure. It is reported that the city government shortened the originally planned 17-year schedule to just two years to meet the mass production timeline.

Taiwan Economic Daily News = Yoon Hyejung, Yang Lingyuan, Lin Zhengfeng / Translated by Asia Economy

*This column has been published as part of a strategic partnership between Asia Economy and Taiwan Economic Daily News.