TSMC’s Q3 Revenue Soars 30% Demand for AI, HPC Grows

In Focus

• TSMC has reported a 30% surge in third-quarter revenue
• The revenue surge has been driven largely by AI demand
• TSMC’s third-quarter earnings surpassed market predictions

World’s largest contract chipmaker Taiwan Semiconductor Manufacturing Company (TSMC) has reported a 30% surge in its third-quarter revenue. According to Reuters, TSMC’s Q3 revenue surpassed market predictions due to increased demand for AI applications.

Significantly Higher Revenue than Q3 2024

Revenue for the July-September totaled T$989.92 billion ($32.47 billion), as per Reuters calculations. This represented a significant increase from the T$759.69 billion (about $24.8 billion) reported by the company the same period a year ago.

TSMC’s third-quarter revenue earnings topped analyst LSEG estimates of T$973.26 billion.
The company’s Q3 revenue also aligns with the guidance issued by the company in July 2025, which ranged from $31.8 billion to $33 billion. However, the company’s Q3’s 30% revenue growth is lower compared to Q2’s 38.6%. The chipmaker will deliver a full TSMC Q3 financial report on October 16, 2025. The report will include an updated fourth-quarter and full-year outlook.

The company reported higher Q3 revenues despite the U.S. revoking TSMC’s waiver that enabled it to export important chipmaking equipment and technology to its factory in Nanjing, China. The decision effectively removed TSMC’s validated end user (VEU) status starting December 31, 2025. With the status TSMC can receive U.S-made chipmaking equipment without acquiring an export license each time.

Why Did TSMC’s Q3 Revenue Surge Beyond Expectations?

TSMC has established itself as a market leader in the AI chip revolution. Its 2025 third-quarter revenue performance underscored the growing demand for advanced AI chips and high-performance computing (HPC).

In the third-quarter, TSMC’s revenue growth was largely driven by a 31.4% year-on-year increase in September 2025 sales, which hit the T$330.98 billion ($10.84 billion) mark. This performance points to TSMC’s dominance in the production of cutting-edge chips used in GPUs, AI accelerators, and HPC applications. Revenue from the company’s AI and HPC business accounted for 60% of the third-quarter revenue.

Early this year, TSMC announced plans to invest $100 billion in the U.S. to strengthen chip manufacturing in the country. The investment would facilitate establishment of three new chip fabrication plants, two advanced packaging facilities and a research and development center.

Important Points About TSMC’s Q3 Revenue:

• TSMC’s 2025 Q3 revenue is significantly higher compared to 2024 Q3
• Q3 revenue growth slowed down from Q2’s 38.6%
• Revenue from AI and HPC business accounted for 60% of Q3 results
• TSMC will deliver a full Q3 earnings report on October 16
• Chipmaker will provide outlooks for fourth-quarter and 2026 in the full report

TSMC’s N3 Technology

In 2022, the chipmaker became the first foundry to move 3nm FinFET (N3) technology into high-volume production. The 3nm node has become the industry standard for AI semiconductors. TSMC’s logic chip foundry produces 3nm nodes, which accounts for 25% of the company’s wafer revenue.

This year alone, share prices of the chipmaker have surged 34% due to prolonged TSMC AI demand. This is almost double that of Foxconn whose shares have gained 18.5% this year. Foxconn is the largest contract electronics maker in the world, and NVIDIA’s largest server manufacturer. TSMC’s top customers include NVIDIA and Apple.

In July 2025, TSMC’s market capitalization surpassed the $1 trillion mark for the first time after its stock rose by almost 50%. At the time, Goldman Sachs analysts the company’s tone towards demand for advanced nodes was more positive and AI clients showed no signs of slowing down.