TSMC October Revenue Hits Record NT$586.89 Billion as AI Chip Demand Drives 59.7% Growth

October sales set a new benchmark

Taiwan Semiconductor Manufacturing Co. reported record October 2026 revenue on November 10 in its October 2026 Revenue Report. The company announced that, on a consolidated basis, net revenue for October 2026 was approximately NT$586.89 billion, an increase of 14.7 percent from September 2026 and an increase of 59.7 percent from October 2025. The result puts the world's largest contract chipmaker into the final months of the year with sales running above the average monthly level needed to meet its fourth quarter forecast.

October revenue surpassed the previous record of NT$514.81 billion, set in August, by NT$72.08 billion, or about 14%. For January through October, consolidated revenue totaled NT$4,485.62 billion, an increase of 43.3 percent compared to the same period in 2025. Consolidated revenue combines sales across the company and its subsidiaries.

TSMC has attributed its stronger annual outlook to demand for advanced manufacturing technology. Growing investment in artificial intelligence infrastructure is supporting orders for sophisticated chips, while shipments using its newest commercial manufacturing process, known as 2 nanometers or 2nm, are increasing.

The next financial benchmark is the company's forecast for fourth quarter revenue of US$52.3 billion to US$54.3 billion. October has already supplied roughly 34% to 35% of that target when the quarterly forecast is converted into Taiwan dollars using TSMC's assumed exchange rate.

Growth accelerates beyond the third quarter

October's 59.7% annual increase exceeded the roughly 51% revenue growth recorded in the third quarter by about 8.7 percentage points. The comparison shows that sales growth accelerated as TSMC entered the last quarter of 2026.

TSMC's third quarter revenue was about NT$1.49 trillion, equivalent to US$46.72 billion. Net profit reached a record NT$763.1 billion. Revenue measures what customers pay the company, while net profit is what remains after production costs, other expenses and taxes.

October alone generated revenue equal to roughly 39% of the preceding quarter's total. That comparison gives a sense of the month's scale: a single month produced substantially more than one third of the sales recorded across July, August and September.

The company raised its forecast for full year revenue growth in US dollar terms to about 44% at its October investor conference, from slightly more than 40% in July. That annual forecast uses a different currency from the 43.3% growth reported for January through October, which is measured in Taiwan dollars.

What November and December need to deliver

TSMC's fourth quarter guidance translates into NT$1.66314 trillion to NT$1.72674 trillion at its assumed exchange rate of NT$31.8 per US dollar. Subtracting October's NT$586.89 billion leaves NT$1.07625 trillion to NT$1.13985 trillion for November and December combined.

Those two months would therefore need average revenue of about NT$538.1 billion to NT$569.9 billion to meet the guidance range. October exceeded even the upper end of that required average by almost NT$17 billion.

The calculation means TSMC could meet its quarterly target with average monthly sales below October's record. November and December revenue had not yet been announced, so the quarterly outcome still depends on the remaining sales and the exchange rates used to translate them.

The guidance midpoint of US$53.3 billion represents about 14% growth from the third quarter and about 58% growth from a year earlier. Across the full range, the projected increase from the third quarter is approximately 11.9% to 16.2%. Market estimates cited in coverage of the results were more ambitious, putting average expected annual growth for the fourth quarter at 63%.

Why AI spending reaches TSMC's factories

TSMC manufactures chips designed by companies including Nvidia, AMD and Apple. These customers develop the processors and other semiconductors used in their products, then hire TSMC to make them. A company that designs chips while relying on outside manufacturers is often called a fabless chip designer.

Data centers running AI applications need large amounts of computing power. Spending on those facilities creates demand for processors and related chips, which translates into manufacturing orders for TSMC. The company's role connects investment by major technology businesses with activity inside semiconductor factories.

Demand is supporting several generations of TSMC technology. Production lines using its 3nm and 5nm processes have been operating at higher utilization as orders for advanced chips expand. Utilization describes how much of a factory's available production capacity is being used.

Advanced packaging is another part of the demand picture. After chips are manufactured, packaging connects and protects them. More sophisticated packaging can bring multiple chips together so they exchange data efficiently, an important requirement for demanding AI computing systems.

2nm shipments add another source of growth

TSMC's 2nm process entered mass production in the fourth quarter of 2025. Increasing shipments using that technology were cited as a contributor to October's revenue record, alongside continued demand for other advanced processes.

The term 2nm names a generation of chip manufacturing technology. It is a way of distinguishing a process from earlier generations, rather than a simple measurement of every part inside a chip. Newer processes generally aim to fit more computing capability into a given area while improving power efficiency.

Customers choose a manufacturing process as part of designing a product, often well before that product reaches buyers. That helps explain why demand for 3nm and 5nm manufacturing can remain strong while 2nm production expands: different products move through development and manufacturing on different schedules.

TSMC has also pointed to its technology differences and broad customer base as support for its annual growth forecast. For readers following the sales figures, the practical point is that October's performance draws on several manufacturing generations and customers rather than a single production line.

Expansion stretches into 2028

TSMC expects capital expenditure during 2026 through 2028 to be substantially higher than in the preceding three years. Capital expenditure is money spent on assets such as factories and manufacturing equipment that a business expects to use for years.

The company is advancing construction and equipment installation across a reported 20 factories, with this year's capital expenditure ceiling put at US$64 billion. Those projects require spending before the facilities can begin generating sales.

In Tainan, TSMC has already announced an additional 3nm factory scheduled to begin commercial production in the first half of 2028. Another Tainan project is expected to enter mass production in the first half of 2027. Chairman and Chief Executive C. C. Wei said at the October 15 investor conference that customers would need substantial 3nm capacity for years.

Tainan's government has said it will help secure water, electricity and public facilities while speeding up administrative procedures. For the city, the expansion links future chip output to decisions about utilities, construction and the infrastructure surrounding industrial sites.

Margins remain high as spending increases

TSMC forecast a fourth quarter gross margin of 65% to 67% and an operating margin of 56.5% to 58.5%. Gross margin measures the share of revenue left after the direct cost of producing what a company sells. Operating margin also accounts for operating expenses, including research and administration.

At those projected operating margins, TSMC would retain NT$56.50 to NT$58.50 in operating profit for every NT$100 of revenue, before items such as taxes. The figures show why the company's sales growth matters beyond the size of its monthly revenue record.

The third quarter operating margin reached 58.7%, above the previous guidance ceiling of 58%. The fourth quarter forecast places operating margin slightly below that result, even as revenue is expected to rise. TSMC has therefore guided for a larger business in sales terms without forecasting another increase in that particular profit measure.

Strong sales meet a volatile stock market

TSMC shares in Taiwan closed 2.24% higher on November 10. In US premarket trading, its listed securities were quoted at US$389.62, following a Monday close of US$388.62 after a 3.5% rise.

The US price remained about 20% below its record of US$487.47, reached on October 5. The company also experienced a share price decline after its October 15 results and upgraded outlook, showing that investors were weighing more than current revenue growth.

Investor concerns have centered on the durability of AI spending, the cost of building and powering data centers, financing expenses and possible tighter US regulation of AI. Those issues matter because TSMC is expanding capacity to serve customers whose investment plans extend over several years.

Taiwan's wider market was also dealing with volatility. Restrictions that took effect on November 9 reduced the daily limit on intraday short selling orders from 30% to 3%. Short selling involves selling borrowed shares in the expectation of buying them back later at a lower price.

Taiwan's export figures show the wider demand

Taiwan's October exports rose 58.9% from a year earlier to US$96.76 billion, according to government figures released on November 9. Electronic component exports increased 61.4%, placing TSMC's results within a broader surge in shipments from the island's technology sector.

Factory expansion also brings practical supply concerns. In October, TSMC was exploring whether equipment suppliers could use motors without rare earths in factory automation systems to reduce exposure to Chinese export controls. That work remained at an early stage, with no timetable for broad adoption.

The main dates connect technology development, investment decisions and the latest financial results:

• Fourth quarter of 2025: TSMC's 2nm process entered mass production.
• July 2026: The company projected annual revenue growth of slightly more than 40% in US dollar terms.
• August 2026: Monthly revenue reached the previous record of NT$514.81 billion.
• October 15, 2026: TSMC presented its third quarter results, raised its annual growth outlook to about 44% and outlined further capacity expansion.
• November 10, 2026: TSMC announced October revenue of NT$586.89 billion.
• First halves of 2027 and 2028: The two Tainan 3nm projects are scheduled to begin commercial production.

Key Points

• October revenue reached a record NT$586.89 billion, up 59.7% from a year earlier and 14.7% from September.
• Revenue for January through October totaled NT$4,485.62 billion, an increase of 43.3%.
• November and December need average monthly sales of about NT$538.1 billion to NT$569.9 billion to meet fourth quarter guidance at TSMC's assumed exchange rate.
• AI infrastructure spending and demand for advanced manufacturing, including rising 2nm shipments, are supporting growth.
• TSMC expects greater capital expenditure in 2026 through 2028 than in the preceding three years.
• Strong operating results are arriving alongside market concerns about the cost and durability of AI investment.