TSMC Posts Sixth Consecutive Quarterly Profit Record as 2nm Process Reaches 8% Revenue Share in Its First Quarter of Volume Production TSMC, the world...

What happened

TSMC announced its 3Q26 financial results on October 15: revenue reached $46.72B, up 41.2% YoY and 16.2% QoQ; gross margin was 66.4% (down 1.3 percentage points QoQ, primarily due to margin dilution from the initial ramp-up of 2nm production); net income rose 68.7% YoY to NT$763.06B and EPS reached NT$29.43, marking the sixth consecutive quarterly profit record. The 2nm process accounted for 8% of wafer revenue in its first quarter of volume production, up from 3% in the previous quarter (nearly tripling QoQ); 3nm remained the largest contributor at 33%, followed by 5nm at 28% and 7nm at 10%, with 7nm and more advanced processes combined at 79% of total wafer revenue. Inventory days declined five days QoQ to 82, suggesting inventory accumulated during the initial 2nm ramp-up is beginning to be absorbed. CapEx totaled $13.84B in 3Q26, bringing cumulative spending for the first three quarters of the year to $40.64B. By platform, HPC contributed 68% of revenue (up 22% QoQ), smartphones 21% (up 10% QoQ), automotive electronics 4% (up 23% QoQ), IoT 4% (up 5% QoQ), and consumer electronics 1% (down 12% QoQ). North American customers contributed 79% of revenue (up one percentage point QoQ), Asia-Pacific 10%, China 5%, and Japan and EMEA 3% each. Chairman and CEO C.C. Wei said the company expects full-year 2026 revenue, in US dollar terms, to grow by approximately 44% (a forecast), with 2nm production ramping at the Hsinchu and Kaohsiung sites, annual 2nm capacity expected to more than double in 2027, and nearly 25 fabs worldwide progressing in parallel.

Impact and signal

Affected components and suppliers

Source and time

Source: TrendForce Official (Market Data) · 10/15/2026 · View original source