Taiwan Semiconductor Manufacturing Co. reported September revenue of NT$511.86 billion Thursday, up about 55% from a year earlier, bringing its third-quarter sales above analyst forecasts, Investing.com reported. The chipmaker's quarterly revenue came to roughly NT$1.49 trillion as demand for AI and data center chips stayed strong.

What Happened

September sales rose 54.6% from NT$330.98 billion in the same month of 2025, according to figures also reported by DIGITIMES. They were 0.6% lower than in August, which remains TSMC's record month. Investing.com put the September total at about US$16 billion.

For the July-to-September quarter, revenue rose 51% from a year earlier to about NT$1.49 trillion. Analysts surveyed by Bloomberg had expected about NT$1.46 trillion. Revenue for the first nine months of 2026 climbed 41.1% to about NT$3.90 trillion.

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Investors took the figures in stride. TSMC's Taipei-listed shares were down nearly 1% at NT$2,555 by 05:45 GMT, Investing.com reported.

Why It Matters

TSMC's monthly sales report is one of the earliest public reads on AI hardware spending each quarter, arriving weeks before most chip designers and cloud providers report. Investing.com attributed the gains to continued demand from customers including Nvidia, AMD and Apple for advanced chips used in AI accelerators and data centers.

The quarter also appears to have come in ahead of TSMC's own outlook. In July, the company guided third-quarter revenue to between US$44.6 billion and US$45.8 billion, assuming an exchange rate of NT$32 to the U.S. dollar, with a gross margin of 65% to 67% and an operating margin of 56% to 58%. At that assumed rate, NT$1.49 trillion converts to roughly US$46.5 billion, above the top of the range. That is The Primary Wire's approximate calculation, not a TSMC figure; actual exchange rates during the quarter will affect the number the company reports.

Context

When it issued that guidance in July, TSMC's chief financial officer said the third quarter would be supported by the steep ramp-up of the company's 2-nanometer technology. In the second quarter, 2-nanometer shipments already made up 3% of total wafer revenue, according to TSMC's July results.

The flat month-to-month result in September suggests revenue held near record levels through the end of the quarter rather than peaking early. Taken together, the nine-month growth of 41.1% and the quarter's 51% rise show the pace of growth accelerating as the year has gone on.

What to Watch

TSMC will report full third-quarter results, including its U.S. dollar revenue, margins and fourth-quarter guidance, at its quarterly earnings call later this month. Investors will look at whether gross margin landed within or above the 65% to 67% range, any change to capital spending plans and how much the 2-nanometer ramp contributed. The company's October sales report, due next month, will give the first read on the final quarter of the year.