Q3 revenue increased 40.8% YoY and 10% QoQ while net income increased 39.1%.
Compared to second quarter 2025, third quarter results represented a 6.0% increase in revenue and a 13.6% increase in net income.
Gross margin for the quarter was 59.5%, operating margin was 50.6%, and net profit margin was 45.7%.
In the third quarter, shipments of 3-nanometer accounted for 23% of total wafer revenue; 5-nanometer accounted for 37%; 7-nanometer accounted for 14%. Advanced technologies, defined as 7-nanometer and more advanced technologies, accounted for 74% of total wafer revenue.
“Our business in the third quarter was supported by strong demand for our leading-edge process technologies,” said Wendell Huang, Senior VP and Chief Financial Officer of TSMC. “Moving into fourth quarter 2025, we expect our business to be supported by continued strong demand for our leading-edge process technologies.”
2025 capex is expected to be $42 billion.
“We are preparing to upgrade our technologies faster to N2 and more advanced processes in Arizona, given the strong AI-related demand from our customers,” TSMC CEO C C Wei said on the earnings call.
Wei also said TSMC is close to securing a second large plot of land close to its Arizona site to provide more flexibility in response to the strong, multiyear AI demand.
“Our plan will enable TSMC to scale up to an independent Gigafab cluster in Arizona to support the needs of our leading-edge customers in smartphone, AI and HPC applications,” said Wei.
Based on the Company’s current business outlook, management expects the overall performance for fourth quarter 2025 to be as follows:
Revenue is expected to be between US$32.2 billion and US$33.4 billion;
And, based on the exchange rate assumption of 1 US dollar to 30.6 NT dollars,
Gross profit margin is expected to be between 59% and 61%;
Operating profit margin is expected to be between 49% and 51%.
