TSMC posts record profit on demand for AI chips
Taiwanese chipmaker sees revenue and profit soar and explores additional production in Texas.
There is news on this story (Thursday, 15 October 2026, 19:10): TSMC explores additional chip production in Texas
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TSMC posted record figures again in the third quarter. Revenue rose by 51 per cent and net profit by 69 per cent, mainly driven by demand for chips used in artificial intelligence.
Taiwan Semiconductor Manufacturing Company reported revenue of 1.49 trillion Taiwanese dollars for July to September. Net profit came to 763.1 billion Taiwanese dollars, equivalent to almost $24 billion, according to news agency AP.
TSMC makes advanced chips for companies including Nvidia and Apple. It is therefore regarded as an important barometer for the investment wave surrounding data centres and AI services. According to chief executive C.C. Wei, demand remains above what TSMC can produce.
The manufacturer is therefore examining expansion beyond its existing plans in Arizona. Texas is one of the locations under consideration. TSMC also says it is open to working with the Terafab chip complex planned by Elon Musk, but stresses that any factory would have to be run by TSMC itself.
The company has already announced an investment programme of $265 billion for chip production in the United States. According to AP, $100 billion in additional investment in Arizona was pledged in July. The scale and timing of a possible factory in Texas have not yet been finalised.
The results come at a time when investors are questioning whether AI investment will continue for long enough to justify chip companies’ high valuations. TSMC’s figures point to sustained orders, but do not indicate how much of that demand will ultimately remain profitable for the sector as a whole.
For European and Dutch companies in the chip supply chain, the distribution of new production capacity is particularly important. TSMC has not yet taken a final decision on Texas and has published no concrete timetable for the location.
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The financial figures and plans for possible expansion in Texas have been described by TSMC and AP. The text makes clear that this is an exploration, not a final construction decision.
- confirmed TSMC reported revenue of 1.49 trillion Taiwanese dollars for the third quarter. — This is stated in AP’s reporting and in TSMC’s quarterly publication. source
- confirmed Net profit amounted to 763.1 billion Taiwanese dollars and was 69 per cent higher than a year earlier. — AP cites TSMC’s quarterly figures. source
- confirmed TSMC is examining an expansion of production in Texas. — According to AP, TSMC chief executive C.C. Wei confirmed that teams are evaluating the location. source
- confirmed TSMC has announced $265 billion in US investments. — AP mentions this amount and the planned investments in Arizona. source
Editor's note
The quarterly figures and the exploration of Texas have been confirmed. The precise scale and timetable of any potential factory remain unknown.Sources
The story so far
- Thursday, 15 October 2026, 19:02 TSMC posts record profit on demand for AI chips (this article)
- Thursday, 15 October 2026, 19:10 TSMC explores additional chip production in Texas