The financial results released by TSMC for the third quarter of 2026 confirm the company’s dominance in the semiconductor manufacturing market. The Taiwanese giant reported total revenue of $46.72 billion, up 50.9% from the previous period. This performance was accompanied by a 69% surge in net income, reaching $23.37 billion. These figures demonstrate that the new production capacity is a key driver of profitability for the group.
The spectacular growth in profit is primarily driven by the ramp-up of the most advanced manufacturing nodes. N3 processes now account for 33% of total revenue, a share that has increased by 10 percentage points in one year. At the same time, N2 technologies contribute 8% of total revenue. These two advanced segments have significantly increased the average value of wafers sold, even though the total volume of wafers processed rose by only 9.6%.
CEO C.C. Wei commented on these results, emphasizing that the growth momentum has not run out. He stated that the group’s profitability knows no limits, thereby expressing full confidence in continuing this upward trajectory. This statement reflects TSMC’s ability to maintain high margins thanks to the complexity and scarcity of the cutting-edge technologies it has mastered.
TSMC: Growth Boosted by N3!
In terms of production mix, N3 nodes have officially surpassed N5 variants to become the dominant technology. The share of N5 products fell from 37% to 28%, while that of N3 products rose from 23% to 33%. This shift marks a major strategic turning point for the group, which is now focusing on the latest and most lucrative technologies.
TSMC is actively pursuing its expansion program with the construction of 20 new fabs, 13 of which are located in Taiwan. The company plans to launch mass production of the A14 process by 2028, with a risk production phase scheduled for late next year. In addition, a new expansion of Fab 18 in Tainan is planned to boost manufacturing capacity for 3-nm nodes—an unusual decision that underscores the strategic importance of this technology.
Regarding international projects, TSMC has confirmed its participation in Elon Musk’s Terafab project, noting that it could handle part of the production in-house. As for rumors of a new factory in the United States, the company responded diplomatically, stating that it is evaluating various options, without officially confirming or denying an imminent project. These announcements point to continued expansion of TSMC’s presence in the global market.