TSMC third-quarter net profit jumps 69% on AI demand

what happened

According to TradingView, Taiwan Semiconductor (2330) posted a 69% rise in third-quarter net profit, reaching NT$763.1 billion. Revenue came in at $46.72 billion, with a gross margin of 66.4%. For the fourth quarter, the company expects revenue between $52.3 and $54.3 billion and a gross margin of 65% to 67%. The report states that AI demand currently exceeds available capacity. The company's US depositary receipts (ADRs) gained 1.89% during trading.

Separately, the company is in early talks with suppliers to test motors for factory automation that do not rely on rare earth metals. The aim is to reduce dependence on Chinese rare earth materials and hedge against possible export restrictions.

why it matters

For the semiconductor sector, the report is a strong signal: higher profit and a high margin while demand outpaces capacity matter for the whole industry and for the largest contract chipmaker. The search for rare-earth-free alternatives shows how industrial companies are preparing for trade curbs, which bears on supply chains across the market.

market impact

TSMC shares and Taiwan equities: strong results support the semiconductor sector

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