TSMC posts sixth straight record profit as AI chip demand strains capacity
The chipmaker reported a 68.7% rise in third-quarter net profit, while customers compete for access to the manufacturing capacity behind AI processors.
TSMC reported its sixth consecutive record quarterly profit on Thursday, October 15, as demand for advanced chips boosted its third-quarter results. The Taiwan-based manufacturer is also facing intense demand for production capacity from companies building AI processors, according to CNBC, making access to its factories a pressing issue for customers.
Net profit rose 68.7% from a year earlier to NT$763.1 billion ($23.6 billion), AFP reported. That exceeded the previous record of NT$706.6 billion set in the preceding quarter. Third-quarter revenue rose 50.9% to NT$1.5 trillion. Profit beat analyst estimates, according to AFP.
How AI chip customers are seeking TSMC capacity
TSMC chief executive C.C. Wei said demand for advanced chips remained ‘extremely robust,’ including a steep ramp-up of the company's 2-nanometer technology, AFP reported. CNBC reported that TSMC's North American chief executive, Sajiv Dalal, receives at least 10 calls a day about wafer capacity, an indication of the volume of customer inquiries rather than a measure of orders the company cannot fill.
Mizuho Securities analyst Jordan Klein described competition for TSMC supply as ‘extremely fierce,’ according to CNBC. The outlet reported that Nvidia and AMD arrange lengthy contracts and bespoke deals years in advance because producing logic chips is complex and expensive. It also identified Apple, Google, Amazon, Microsoft, Meta and OpenAI as customers relying on TSMC to manufacture custom in-house AI accelerators. It was not immediately clear which customers were seeking the same allocations or how much current capacity remained available.
The breadth of that customer base helps explain why additional production matters. CNBC, citing company filings, reported that TSMC had 534 customers in 2025, while its 10 largest customers accounted for 78% of net revenue. The company reported capacity to produce more than 17 million 12-inch-equivalent wafers last year, CNBC said.
Factory expansion and the limits of near-term supply
TSMC is adding capacity through factory projects in Taiwan, Japan and Arizona, but those expansions take years to come online, CNBC reported. Wei also said the company had sent an evaluation team to Texas as it considered further US expansion. He gave no details, and the plans remained under discussion, according to AFP. For customers arranging production years ahead, the timing of new capacity remains consequential even as TSMC's latest results show strong current demand.
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Sources and context
- TSMC chip capacity is ‘fierce’ battleground for AI customers, amid record quarterCNBC
- TSMC's net profit hits record in third quarterAFP, carried by The Korea Herald
AI-assisted article checked against the listed sources. NewsJaws did not conduct interviews or attend the reported events.