TSMC (TSM) Q3 2025 Results: Strong Growth and Record Profitability
Earnings Release Date: October 16, 2025
Key Points
- Revenue: NT$989.92 billion (US$33.10 billion), up 30.3% YoY and 6.0% QoQ.
- Net income: NT$452.30 billion, up 39.1% YoY and 13.6% QoQ.
- EPS: NT$17.44 (US$2.92 per ADR), up 39% YoY.
- Gross margin: 59.5%; Operating margin: 50.6%; Net profit margin: 45.7%.
- Advanced nodes: 3nm accounted for 23% of wafer revenue, 5nm for 37%, and 7nm for 14%.
- Advanced technologies (7nm and below): Represented 74% of total wafer revenue.
Against Street Expectations:
- EPS beat estimates of US$2.84 by 3%.
- Revenue surpassed expectations of US$32.9 billion by 1%.
Quarter Highlights
- Revenue growth driven by AI-related demand, higher 3nm utilization, and continued strength in HPC and smartphone segments.
- Gross profit: NT$588.54 billion, up 34% YoY.
- Operating income: NT$500.69 billion, up 38.8% YoY.
- Sequential growth of 6% in revenue and 13.6% in net income highlights operational leverage.
- Margins: All major margins improved both YoY and QoQ, reaching near-record levels above 50% operating margin.
- Technology mix: Continued transition to 3nm and 5nm nodes reflecting strong AI, server, and mobile demand.
CEO and CFO Remarks
Wendell Huang, Senior Vice President and CFO, stated: “TSMC’s strong third quarter results were driven by demand for our industry-leading 3-nanometer technology and continued ramp of AI-related products. Our structural profitability remains healthy, supported by cost improvements and product mix.”
Future Outlook
- TSMC expects continued growth in advanced process adoption led by 3nm and ramping 2nm development.
- Management reaffirmed confidence in long-term demand from AI, HPC, and mobile computing segments.
- CapEx remains focused on advanced technologies and geographic diversification across Taiwan, Japan, and the U.S.
- No specific Q4 revenue or EPS guidance disclosed in this release.
Financial Summary
| Metric | Q3 2025 | Q3 2024 | QoQ Change |
|---|---|---|---|
| Revenue | NT$989.92 B | NT$759.69 B | +6.0% |
| Gross Profit | NT$588.54 B | NT$439.35 B | +7.5% |
| Operating Income | NT$500.69 B | NT$360.77 B | +8.0% |
| Net Income | NT$452.30 B | NT$325.26 B | +13.6% |
| EPS (NT$) | 17.44 | 12.54 | +13.6% |
| Gross Margin | 59.5% | 57.8% | — |
| Operating Margin | 50.6% | 47.5% | — |
| Net Profit Margin | 45.7% | 42.8% | — |
Capital Return
- No dividend declaration or repurchase announcement included in the press release.
- TSMC continues disciplined capital spending aligned with long-term technology expansion.
About TSMC
Founded in 1987, Taiwan Semiconductor Manufacturing Company (TWSE: 2330, NYSE: TSM) pioneered the pure-play foundry model and remains the world’s leading dedicated semiconductor manufacturer. The company supports a global ecosystem of customers and partners with cutting-edge process technologies and design enablement solutions. In 2024, TSMC deployed 288 process technologies and manufactured 11,878 products for 522 customers worldwide. The company is headquartered in Hsinchu, Taiwan, with operations across Asia, Europe, and North America.
Key Takeaways
- Broad-based growth: Revenue up 30% YoY, led by strong AI, HPC, and smartphone demand.
- Record profitability: Gross margin near 60%, operating margin above 50%, highlighting structural efficiency.
- Technology leadership: 3nm and 5nm nodes contributed 60% of wafer revenue.
- Operational leverage: Net income up 39% YoY, outpacing revenue growth.
- Resilient demand: Advanced technologies now represent nearly three-quarters of wafer revenue, solidifying TSMC’s leadership amid the AI semiconductor boom.