TAIPEI — Driven by the artificial intelligence (AI) boom, TSMC, the world's largest semiconductor foundry, has broken its all-time net income record once again in the third quarter of this year.

According to Reuters and AFP on the 15th (local time), TSMC announced that its third-quarter net income surged by 68.7% year-over-year to 763.1 billion New Taiwan dollars (approx. $23.7 billion USD / 31.7 trillion won), setting a new net income record for the sixth consecutive quarter.

This figure is 8% higher than the second-quarter net income and surpasses the market consensus of 746.3 billion New Taiwan dollars (approx. $23.2 billion USD / 31 trillion won) estimated by the London Stock Exchange Group (LSEG).

The gross margin stood at 66.4%, affected by an increase in shipments of advanced 2-nanometer (nm) process products. While up 6.9 percentage points year-over-year, it is down 1.3 percentage points from the previous quarter, aligning with expectations.

The revenue share of products utilizing the 2nm process rose from 3% in the second quarter to 8% in the third quarter. Combined with 3nm (33%), 5nm (28%), and 7nm (10%), the total revenue share of advanced processes of 7nm and below climbed to 79%, up from 77% in the previous quarter.

Earlier on the 8th, TSMC reported that its third-quarter revenue grew 50.9% year-over-year to reach a record high of 1.49 trillion New Taiwan dollars (approx. $46.4 billion USD / 62.2 trillion won).

For the fourth quarter, TSMC issued a revenue outlook projecting a year-over-year increase of up to 61%, reaching between $52.3 billion and $54.3 billion USD (approx. 70.3 trillion to 73 trillion won).

TSMC CEO C.C. Wei remarked that the demand for advanced chips is extremely strong, stating, "We are trying to do everything we can, whenever possible, as fast as possible. We have no intention of leaving food on the table for competitors. We want to capture every possible business opportunity."

At the same time, citing rising component costs and macroeconomic uncertainties, he added, "We are being cautious about our business plans for next year."

Regarding TSMC's investments in the United States, Wei explained that the company is looking for sites beyond Arizona for plant expansion, noting that employees have been dispatched to Texas to evaluate potential locations.

"We are working very hard to expand our production capacity in the U.S.," he said, while withholding specific details as discussions remain ongoing.

On the possibility of TSMC participating in Tesla CEO Elon Musk's semiconductor factory project "TerraFab," Wei stated that it is "still in the discussion phase," but emphasized that "(rather than simply leasing capacity) TSMC will operate it."

While TSMC maintained its capital expenditure outlook for this year at $60 billion to $64 billion USD (approx. 80.7 trillion to 86 trillion won), Bloomberg reported that the market is raising its consensus for next year's capital expenditures.

The average capital expenditure forecast for next year compiled by Bloomberg stands at $75 billion USD (approx. 100.8 trillion won), while Goldman Sachs and UBS Group project $85 billion USD (approx. 114.3 trillion won) and $90 billion USD (approx. 121 trillion won), respectively.

Meanwhile, amid recent downward adjustments in global semiconductor stocks, TSMC's stock closed down 2.01% on the Taiwan Stock Exchange prior to the earnings announcement. TSMC's stock has risen by about 60% since the beginning of the year.

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