Strong demand for artificial intelligence chips lifted Taiwan Semiconductor Manufacturing Company’s (TSMC) third-quarter financial results. The company’s net profit rose 68.7% from the same period last year to 763.1 billion New Taiwan dollars, and TSMC posted a record profit for the sixth consecutive quarter.
TSMC’s net profit was equivalent to approximately $23.5 billion, exceeding market expectations. Revenue also came in above expectations, reaching $46.36 billion.
The operating profit margin was recorded at 58.7%, exceeding the upper end of the company’s expected range of 58%.

High-performance computing accounted for 68% of revenue
High-performance computing accounted for the largest share of TSMC’s quarterly revenue. Supported by demand for advanced semiconductors, the segment made up 68% of total revenue.
Smartphones ranked second with a 21% share. In terms of manufacturing technologies, 3-nanometer chips generated the largest share of revenue at 33%, followed by 5- and 7-nanometer chips.

Automotive revenue leads quarterly growth
Automotive was the fastest-growing business among the company’s platforms compared with the previous three months. TSMC’s revenue from this segment increased by 23%.

The company’s free cash flow also rose to $14.7 billion from $4.3 billion in the same period last year.
U.S. investment plan stands at $265 billion
The financial results were announced as TSMC continued its plans to expand manufacturing operations in the United States. In its second-quarter results announced in July, the company said its total planned investment, including investments in Arizona, amounted to $265 billion.