TSMC Reports 59.7% Rise in October Revenue to NT$367.47 Billion Amid AI Chip Demand

Taiwan Semiconductor Manufacturing Company (NYSE:TSM) reported a 59.7% year-on-year increase in October 2026 revenue, supported by continued demand for advanced semiconductors used in artificial intelligence applications.

The Taiwanese contract chip manufacturer recorded monthly revenue of NT$367.47 billion (approximately US$11.8 billion), according to figures released by the company on Tuesday.

Revenue also increased by nearly 15% compared with September, reflecting continued growth in semiconductor orders.

Revenue for First Ten Months Rises 43.3%

For the January-to-October period, TSMC reported cumulative revenue of NT$3.130 trillion, representing a 43.3% increase compared with the corresponding period of 2025.

The figures indicate continued growth in the company’s semiconductor manufacturing business, particularly in advanced chips used for artificial intelligence computing.

TSMC, the world’s largest contract semiconductor manufacturer, supplies chips to technology companies developing processors and computing systems for a range of applications.

Demand associated with artificial intelligence development has remained an important contributor to the company’s revenue growth.

Artificial Intelligence Demand Supports Manufacturing Activity

The company’s latest revenue figures reflect continued investment in artificial intelligence infrastructure, including advanced computing processors and related semiconductor technologies.

TSMC Chief Executive Officer C.C. Wei has indicated that demand for chips used in artificial intelligence applications is expected to continue through 2027 and beyond.

The outlook reflects expectations of sustained orders from customers developing AI computing platforms and supporting infrastructure.

The expansion of artificial intelligence applications has increased requirements for advanced semiconductor manufacturing capacity, an area in which TSMC holds a significant position.

October Performance Follows Record Third-Quarter Earnings

The October revenue increase followed TSMC’s record earnings for the quarter ended September 2026.

The latest monthly figures indicate continued revenue growth at the beginning of the fourth quarter, although the company’s full quarterly performance will depend on results for November and December.

The nearly 15% month-on-month increase in October sales also provides an indication of the pace of demand entering the final quarter of the year.

The company has continued to benefit from orders for advanced semiconductor technologies, with artificial intelligence applications contributing to manufacturing requirements.

TSMC Plans Production Capacity Expansion

TSMC intends to expand its manufacturing capacity to address increasing customer demand.

The company has indicated that existing production capabilities may remain insufficient to satisfy all orders over the coming quarters.

This potential imbalance between available manufacturing capacity and customer requirements reflects the pace of demand for advanced semiconductor products.

Additional capacity is expected to support the company’s ability to fulfil orders, although the timing and scale of production increases will depend on the implementation of its expansion plans.

Outlook

TSMC’s October revenue figures showed continued growth following its record third-quarter earnings, with artificial intelligence-related semiconductor demand remaining a central factor.

The company expects demand for advanced chips to extend into 2027 and subsequent years, while planned manufacturing investments are intended to increase available production capacity.

Future revenue performance will depend on customer orders, manufacturing capacity and the company’s ability to meet demand for advanced semiconductor technologies.

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