Stock

# TSMC (TSM)

TSMC makes chips for other companies, and its Q3 2026 revenue rose 41% to $46.72B as it guided Q4 to $52.3B to $54.3B.

Updated Oct 29, 2026

Information and analysis only, not a recommendation to buy, sell or hold any security. The author may own securities discussed.

Researched and drafted with AI agents. Every figure is taken from a source cited on the page.

Analysis and information

## What it does

TSMC is a contract chipmaker, or foundry. It makes chips that other companies design. It served 534 customers in 2025 and is based in Hsinchu, Taiwan.

## Role in the theme

In the Chips, equipment and servers theme, TSMC makes leading-edge chips and ties much of its demand to AI accelerators. Chips made at 7nm and below were 79% of its Q3 wafer revenue.

## Latest

- **2026-10-16:** Taiwan's economy minister said advanced chips and AI servers would be added to Taiwan's export control list, with some rules following US rules. He did not say when the rules would take effect.
- **2026-10-15:** Q3 revenue was $46.72B, up 41.2% from a year earlier and 16.2% from Q2. Gross margin was 66.4%. 2nm chips were 8% of wafer revenue and 3nm chips were 33%.
- **2026-10-15:** Q4 guidance is revenue of $52.3B to $54.3B and gross margin of 65% to 67%.
- **2026-10-15:** On the call, TSMC said it expects 2026 revenue growth of about 44% in US dollars. It kept its 2026 capital budget at $60B to $64B.
- **2026-10-08:** September revenue was NT$511.86B, up 54.6% from a year earlier.

## What to watch

- **The 2nm ramp,** which TSMC called "steep" for Q4.
- **Capital spending after 2026.** TSMC expects 2026 to 2028 capex to be significantly higher than in the past three years. It said it is too early to give a number beyond this year.
- **Taiwan's export control rules** and when they start.
- **Next report:** October revenue and Q4 2026 results. Dates are not announced (not confirmed).

## Covered in

- Theme: [Chips, equipment and servers](/research/themes/chips-equipment-servers)

## Sources

Primary means the publisher of the data or the filing; secondary means press or an aggregator.
- [TSMC reports third quarter 2026 results](https://www.sec.gov/Archives/edgar/data/1046179/000104617926000726/a3q26e_withguidancexfinal.htm)Primary 2026-10-15
- [TSMC Q3 2026 earnings call transcript](https://investor.tsmc.com/english/encrypt/files/encrypt_file/reports/2026-10/eba4fac72873bf546b669bd2b5d973df5c93215d/TSMC%203Q26%20Transcript.pdf)Primary 2026-10-15
- [TSMC September 2026 revenue report](https://www.sec.gov/Archives/edgar/data/1046179/000104617926000680/tsm-revenue20261008.htm)Primary 2026-10-08
- [Taiwan to impose strict controls on AI chip exports to China](https://www.taiwannews.com.tw/news/6459737)Secondary 2026-10-16
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