TSMC’s revenue in October reached 586.8 billion yuan, a monthly increase of 14.7% and a new high

Demand from TSMC’s beneficiary customers continues to be strong, with revenue in October reaching 586.8 billion yuan, a monthly increase of 14.7% and a new high. (Bloomberg)

[Reporter Lin Yiru/Taipei Report] TSMC (2330), the leading wafer foundry, announced today (10th) that its October revenue was 586.89 billion yuan, benefiting from continued strong customer demand. In addition, the 2nm process has begun mass production, and the demand for advanced processes has continued. It continued to prosper, driving revenue to increase by 14.7% monthly and 59.7% annually, breaking through the 500 billion yuan mark for three consecutive months and setting a new high. The cumulative revenue in the first 10 months was approximately 4.485617 billion yuan, an increase of 43.3% over the same period last year.

Looking forward to the fourth quarter, TSMC estimates that U.S. dollar revenue will be between 52.3 billion and 54.3 billion U.S. dollars. Calculated at the midpoint, it is equivalent to a quarterly increase of 14%. Calculated based on the assumption of an exchange rate of NT$31.8 against the U.S. dollar, the gross profit margin is estimated to be 65% to 67%, and the operating profit margin is 56.5% to 58.5%. For the whole year of 2026, as customer structural demand continues to be strong, resources will continue to be invested to support customer demand. It is expected that US dollar revenue will increase by 44% annually in 2026, which is revised up from the previous estimate of more than 40%.

The latest report from foreign investor Bernstein is optimistic that the demand for CPUs driven by AI Agents is stronger than originally expected, especially ASIC CPUs developed by Amazon and Google, which will become a new revenue growth driver for TSMC. It is estimated that the proportion of CPU revenue in TSMC's total revenue will increase from about 14% in 2026 to about 16% from 2027 to 2028.

TSMC President Wei Zhejia also said at a press conference a few days ago that AI demand is still very strong. In addition to AI accelerators, it is also observed that the market demand for higher-efficiency AI CPUs has increased. The overall demand may still be much higher than the current production capacity. "There is no sign of demand slowing down."