Financial Highlights - Third quarter revenue increased 10.1% sequentially to $33.1 billion, slightly above guidance, driven by strong demand for leading-edge process technologies [3][11] - Gross margin rose 0.9 percentage points sequentially to 59.5%, primarily due to cost improvements and higher capacity utilization [3][7] - Operating margin increased 1.0 percentage point sequentially to 50.6% [3] - EPS was TWD 17.44, up 39% year-over-year, with ROE at 37.8% [3] - Cash and marketable securities totaled TWD 2.8 trillion ($90 billion) at the end of the quarter [4] Business Line Performance - 3 nm process technology contributed 23% of wafer revenue, while 5 nm and 7 nm accounted for 37% and 14% respectively [4] - Revenue from the smartphone segment increased 19% to account for 30% of total revenue, while IoT and automotive segments grew by 20% and 18% respectively [4] - Data Center Equipment (DCE) revenue decreased by 20% to account for 1% of total revenue [4] Market Data - The company expects fourth quarter revenue to be between $32.2 billion and $33.4 billion, representing a 1% sequential decrease or a 22% year-over-year increase at the midpoint [6][7] - Full-year 2025 revenue is expected to increase by close to mid-30% year-over-year in U.S. dollar terms [11] Company Strategy and Industry Competition - TSMC is focusing on maintaining technology leadership and manufacturing excellence while investing in advanced process technologies to support AI-related demand [9][12] - The company is narrowing its 2025 CapEx range to $40 billion to $42 billion, with 70% allocated for advanced process technologies [10] - TSMC is expanding its global manufacturing footprint, including capacity expansion in Arizona and Japan, to meet strong multi-year AI-related demand [17][18] Management Commentary on Operating Environment and Future Outlook - Management remains optimistic about AI-related demand, expecting it to continue driving growth [11][13] - There are uncertainties regarding tariff policies that could impact consumer-related markets, but management is focused on technology leadership and customer trust [12] - The company is preparing for a structural increase in long-term market demand, particularly in AI applications [15] Other Important Information - TSMC's advanced packaging revenue is approaching 10% of total revenue, highlighting its importance in the competitive landscape [102] - The company is working closely with customers to ensure capacity meets demand, particularly in the AI sector [15][16] Q&A Session Summary Question: AI Demand Growth - Management confirmed that AI demand continues to be strong, with expectations for growth rates potentially exceeding previous mid-40% CAGR forecasts [26][27] Question: CapEx Outlook - Management indicated that CapEx will correlate with business opportunities, and they expect to continue investing to support growth [29][30] Question: CoWoS Capacity - Management is working to narrow the gap between demand and supply for CoWoS capacity, with updates expected next year [32] Question: Advanced Packaging Expansion - TSMC is building two advanced packaging fabs in Arizona and collaborating with partners to meet customer needs [75] Question: Revenue Growth Drivers - Growth is expected to be driven by technology migration, ASP increases, and volume growth [76][78] Question: AI Data Center Capacity - Management noted that 1 GW of AI data center capacity could require significant investment, but specific wafer demand figures are not yet available [89] Question: Competition and Strategic Initiatives - TSMC is focusing on system performance and advanced packaging to strengthen its competitive position in the Foundry 2.0 landscape [102] Question: Concerns about Prebuilt Inventory - Management expressed no concerns about prebuilt inventory levels, indicating they are at healthy seasonal levels [105]

Financial Highlights - In Q3 2025, revenue increased by 6% sequentially in NT and by 10.1% in USD to $33.1 billion, slightly exceeding guidance [5][6] - Gross margin rose by 0.9 percentage points sequentially to 59.5%, driven by cost improvements and higher capacity utilization [6][12] - Operating margin increased by 1.0 percentage point sequentially to 50.6% [6] - EPS was up 39% year over year, and ROE was 37.8% [6] Business Line Performance - Three nanometer process technology contributed 23% of wafer revenue, while five nanometer and seven nanometer accounted for 37% and 14% respectively [7] - Advanced technologies (seven nanometer and below) made up 74% of wafer revenue [7] - Revenue contribution by platform: HPC remained flat at 57%, smartphone increased by 19% to 30%, IoT grew by 20% to 5%, automotive rose by 18% to 5%, while DCE decreased by 20% to 1% [7][8] Market Data - Cash and marketable securities at the end of Q3 were NT2.8 trillion (approximately $90 billion) [8] - Current liabilities decreased by NT101 billion quarter over quarter, mainly due to a reduction in accrued liabilities [8] Company Strategy and Industry Competition - TSMC is narrowing its 2025 CapEx guidance to between $40 billion and $42 billion, with 70% allocated for advanced process technologies [14] - The company aims to leverage its manufacturing technology leadership and large-scale production to remain the most efficient and cost-effective manufacturer [13] - TSMC is expanding its global manufacturing footprint, with significant investments in Arizona, Japan, and Europe to meet strong AI-related demand [22][24] Management Commentary on Operating Environment and Future Outlook - Management expects continued strong demand for leading-edge process technologies, particularly in AI, with full-year 2025 revenue projected to increase by close to mid-thirties percent year over year in USD terms [16][17] - There are uncertainties regarding tariff policies that could impact consumer-related markets, but TSMC remains focused on technology leadership and customer trust [17][20] - The company is preparing for a structural increase in long-term market demand, particularly in AI applications, and is employing a disciplined capacity planning process [20][21] Other Important Information - TSMC's two nanometer technology is on track for volume production later this quarter, with expectations for a faster ramp in 2026 [25][26] - The company is also introducing N2P as an extension of its N2 family, with volume production scheduled for the second half of 2026 [26] Q&A Session Summary Question: AI Demand Growth - Management confirmed that AI demand continues to be strong, with expectations for growth rates potentially exceeding previous mid-forties CAGR guidance [34][35] Question: CapEx Outlook - Management indicated that CapEx will correlate with growth opportunities, and while it is unlikely to drop significantly, it may increase in response to strong demand [38][40] Question: AI Infrastructure and Token Growth - Management acknowledged that token growth is expected to be exponential, and TSMC's technology will enable customers to handle increased demand effectively [78][84] Question: Competition and Strategic Initiatives - TSMC is focusing on Foundry 2.0 to enhance system performance and is working closely with customers to maintain competitive advantages [112][113] Question: Smartphone Demand and Prebuild Concerns - Management expressed no concerns about prebuild inventory levels, indicating that they are currently healthy and at seasonal levels [117]

Financial Highlights - Third quarter revenue increased 10.1% sequentially to $33.1 billion, slightly exceeding guidance, driven by strong demand for leading-edge process technologies [3][10] - Gross margin rose 0.9 percentage points sequentially to 59.5%, attributed to cost improvements and higher capacity utilization, despite foreign exchange challenges [3][6] - Operating margin increased 1.0 percentage point sequentially to 50.6% [3] - Earnings per share (EPS) was 17.44 NT, up 39% year over year, with a return on equity (ROE) of 37.8% [3] Business Line Performance - Revenue contribution from 3-nanometer process technology was 23%, while 5-nanometer and 7-nanometer accounted for 37% and 14% respectively [4] - High-Performance Computing (HPC) remained flat at 57% of revenue, while smartphone revenue increased 19% to 30%, IoT grew 20% to 5%, and automotive rose 18% to 5% [4] - Data Center Equipment (DCE) revenue decreased 20% to 1% [4] Market Data - The company ended the third quarter with cash and marketable securities of 2.8 trillion NT ($90 billion) [4] - Current liabilities decreased by 101 billion NT, mainly due to a reduction in accrued liabilities [4] Company Strategy and Industry Competition - TSMC is narrowing its 2025 capital expenditures (CAPEX) guidance to between $40 billion and $42 billion, with 70% allocated for advanced process technologies [9] - The company expects gross margin dilution from overseas fabs to be between 1% to 2% for the full year 2025, improved from previous estimates [7] - TSMC aims to leverage its manufacturing technology leadership and large-scale production to remain competitive [8] Management Commentary on Operating Environment and Future Outlook - Management noted strong AI-related demand and a mild recovery in non-AI segments, projecting full-year 2025 revenue growth of close to mid-30% year over year in U.S. dollar terms [10][11] - The company remains cautious about potential tariff impacts on consumer-related markets but is committed to investing in future megatrends [11] - TSMC is focused on technology leadership, manufacturing excellence, and customer trust to strengthen its competitive position [11] Other Important Information - TSMC is expanding its global manufacturing footprint, with significant progress in Arizona and plans for additional fabs in Japan and Germany [16][17] - The company is preparing for the ramp-up of its 2-nanometer technology, with volume production expected later this quarter [18] Q&A Session Summary Question: AI Demand Growth - Management confirmed that AI demand is stronger than previously anticipated, with an expected CAGR in the mid-40% range for AI accelerators [21][24] Question: CAPEX Outlook - Management indicated that CAPEX will correlate with business opportunities, and they will continue to invest as long as growth opportunities exist [26][27] Question: CoWoS Capacity - Management is working to increase CoWoS capacity to meet demand but did not provide specific numbers for 2026 [30] Question: Competition and Foundry 2.0 - TSMC is focusing on system performance and advanced packaging as part of its Foundry 2.0 strategy to enhance competitiveness [74][76] Question: Smartphone Prebuilt Concerns - Management expressed no concerns about prebuilt inventory levels, indicating they are healthy and seasonal [79]

Financial Highlights - In Q3 2025, revenue increased by 10.1% sequentially to $33.1 billion, slightly exceeding guidance [6][10] - Gross margin rose by 0.9 percentage points sequentially to 59.5%, driven by cost improvements and higher capacity utilization [6][11] - Operating margin increased by 1.0 percentage point sequentially to 50.6% [6] - EPS was up 39% year-over-year, and ROE stood at 37.8% [6] Business Line Performance - Three nanometer process technology contributed 23% of wafer revenue, while five nanometer and seven nanometer accounted for 37% and 14% respectively [7] - Advanced technologies (seven nanometer and below) represented 74% of wafer revenue [7] - Revenue from the smartphone segment increased by 19% to account for 30% of total revenue [7] - HPC remained flat at 57%, while IoT and automotive segments grew by 20% and 18% respectively [7] Market Data - Cash and marketable securities totaled NT$2.8 trillion (approximately $90 billion) at the end of Q3 2025 [8] - Current liabilities decreased by NT$101 billion quarter-over-quarter [8] - Accounts receivable turnover days increased by 2 days to 25 days, while days of inventory decreased by 2 days to 74 days [8] Company Strategy and Industry Competition - TSMC plans to narrow its 2025 CapEx guidance to between $40 billion and $42 billion, with 70% allocated for advanced process technologies [13][14] - The company aims to leverage its manufacturing technology leadership and large-scale production to remain competitive [12][13] - TSMC is expanding its global manufacturing footprint, including capacity expansions in Arizona, Japan, and Germany [21][24] Management Commentary on Operating Environment and Future Outlook - Management noted strong demand for leading-edge process technologies, particularly in AI-related markets [15][16] - The company expects full-year 2025 revenue to increase by close to mid-30s percent year-over-year [16] - Management remains cautious about potential impacts from tariff policies and is focused on maintaining technology leadership and customer trust [17][18] Other Important Information - TSMC's two nanometer technology is on track for volume production later this quarter, with expectations for a faster ramp in 2026 [26] - The company is also introducing N2P technology, which offers further performance benefits [26] Q&A Session Summary Question: AI Demand and Growth Forecast - Management confirmed that AI demand is stronger than previously anticipated, with an updated CAGR expected to be better than mid-40s [35] - They emphasized that CapEx will correlate with business opportunities, and growth in revenue should outpace CapEx growth [37] Question: Capacity Expansion Plans - Management indicated that they are working hard to narrow the gap between demand and supply, with plans to increase capacity in 2026 [42] Question: Advanced Packaging and Revenue Drivers - Management stated that growth will be driven by a combination of technology migration, ASP increases, and volume growth [84] Question: Competition and Strategic Initiatives - TSMC is focusing on a holistic approach to system performance, integrating front-end and back-end processes to enhance competitiveness [99] Question: Concerns about Prebuild Inventory - Management expressed no concerns about prebuild inventory levels, noting that inventory is at healthy seasonal levels [101]

更多消息，持续更新中 周四，台积电公布第三季度财报，Q3净利润4,523亿元台币，预估4,054.7亿元台币；第三季度毛利率 59.5％，预估57.1％。台积电2025年前9个月资本支出总计293.9亿美元 持续更新中 风险提示及免责条款 市场有风险，投资需谨慎。本文不构成个人投资建议，也未考虑到个别用户特殊的投资目标、财务状况 或需要。用户应考虑本文中的任何意见、观点或结论是否符合其特定状况。据此投资，责任自负。 ...

台积电2025年第三季度营业收入9899.2亿新台币，上年同期7596.92亿新台币；第三季度净利润4523亿新 台币，创下公司的纪录新高，上年同期为3252.58亿新台币。 (本文来自第一财经) ...

来源：观点地产网 期内，净利润为4523亿新台币，创下公司的纪录新高，同比增加39.1%，环比增加13.6%。 另据披露，台积电第三季毛利率为59.5%，较去年同期上升1.7个百分点，营业利益率为50.6%，税后纯 益率则为45.7%。 免责声明：本文内容与数据由观点根据公开信息整理，不构成投资建议，使用前请核实。 观点网讯：10月16日，据台积电公布，2025年Q3，公司营收为9899.2亿新台币，同比增加30.3%，环比 增加6%。 ...

Core Viewpoint - TSMC's CEO announced that the 2nm process is expected to achieve mass production in the latter part of this quarter, while the A16 chip is anticipated to enter mass production in the second half of next year [1] Group 1 - TSMC is progressing towards the mass production of its 2nm process technology [1] - The A16 chip is projected to begin mass production in the second half of next year [1]

[Executive Summary & Key Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Key%20Highlights) This section provides a high-level overview of TSMC's strong financial performance and key operational highlights for the third quarter of 2025 [Third Quarter 2025 Financial Performance Overview](index=1&type=section&id=Third%20Quarter%202025%20Financial%20Performance%20Overview) TSMC reported strong financial results for Q3 2025, with significant year-over-year and quarter-over-quarter growth in revenue, net income, and EPS. Advanced technologies continued to be a major revenue driver, accounting for 74% of total wafer revenue 3Q25 Key Financial Results (NT$ billion, except EPS) | Metric | 3Q25 (NT$) | YoY Change | QoQ Change | | :-------------------------------- | :---------- | :--------- | :--------- | | Consolidated Revenue | 989.92 | +30.3% | +6.0% | | Net Income | 452.30 | +39.1% | +13.6% | | Diluted EPS (NT$) | 17.44 | +39.0% | +13.6% | | Diluted EPS (US$ per ADR unit) | 2.92 | | | | Gross Margin | 59.5% | +1.7 ppts | +0.9 ppts | | Operating Margin | 50.6% | +3.1 ppts | +1.0 ppts | | Net Profit Margin | 45.7% | +2.9 ppts | +3.0 ppts | - Advanced technologies (7-nanometer and more advanced) contributed **74% of total wafer revenue** in 3Q25. Shipments of 3-nanometer accounted for **23%**, 5-nanometer for **37%**, and 7-nanometer for **14%**[4](index=4&type=chunk) - In US dollars, third quarter revenue was **$33.10 billion**, increasing **40.8% year-over-year** and **10.1% from the previous quarter**[3](index=3&type=chunk) [Company Overview & Legal Notices](index=2&type=section&id=Company%20Overview%20%26%20Legal%20Notices) This section outlines TSMC's business profile, investor contact information, and important safe harbor statements regarding forward-looking information [Profile](index=2&type=section&id=Profile) TSMC, founded in 1987, pioneered the pure-play foundry business model and remains the world's leading dedicated semiconductor foundry. The company supports a global ecosystem with advanced process technologies and design enablement solutions, operating across Asia, Europe, and North America - TSMC pioneered the pure-play foundry business model in 1987 and is the **world's leading dedicated semiconductor foundry**[5](index=5&type=chunk) - In 2024, TSMC deployed **288 distinct process technologies**, manufacturing **11,878 products for 522 customers**, offering a broad range of advanced, specialty, and advanced packaging technology services[6](index=6&type=chunk) [Contact Information](index=2&type=section&id=Contact%20Information) Investor relations inquiries can be directed to Jeff Su at TSMC's Investor Relations Division - Contact for investor relations: **Jeff Su, Investor Relations Division, TSMC, invest@tsmc.com, 886-3-568-2089**[8](index=8&type=chunk) [Safe Harbor Notice](index=2&type=section&id=Safe%20Harbor%20Notice) The press release contains forward-looking statements subject to significant risks and uncertainties, including semiconductor industry cyclicality, demand/supply fluctuations, competition, technological leadership, capacity management, intellectual property rights, natural disasters, and exchange rate fluctuations. Actual results may differ materially, and TSMC undertakes no obligation to update these statements - Forward-looking statements are subject to significant risks and uncertainties, including cyclicality, market conditions, demand/supply, competition, technological leadership, capacity management, intellectual property, natural disasters, and exchange rate fluctuations[8](index=8&type=chunk) - Additional risk factors are detailed in **TSMC's 2024 Annual Report on Form 20-F** filed with the SEC[8](index=8&type=chunk) [Quarterly Management Report (3Q25)](index=3&type=section&id=Quarterly%20Management%20Report%20(3Q25)) This report details TSMC's operating results, revenue and profit analysis, financial condition, cash flow, and capital expenditures for the third quarter of 2025 [Operating Results Review: Summary](index=3&type=section&id=Operating%20Results%20Review%3A%20Summary) TSMC's 3Q25 operating results showed robust growth across key financial metrics, with significant increases in revenue, gross profit, operating income, and net income both quarter-over-quarter and year-over-year. Margins also expanded, reflecting improved operational efficiency 3Q25 Operating Results Summary (NT$ billion, unless otherwise noted) | Metric | 3Q25 | 2Q25 | 3Q24 | QoQ Change | YoY Change | | :--------------------------------------- | :----- | :----- | :----- | :--------- | :--------- | | EPS (NT$ per common share) | 17.44 | 15.36 | 12.54 | 13.6% | 39.0% | | Net Revenue | 989.92 | 933.79 | 759.69 | 6.0% | 30.3% | | Gross Profit | 588.54 | 547.37 | 439.35 | 7.5% | 34.0% | | Gross Margin | 59.5% | 58.6% | 57.8% | | | | Operating Income | 500.69 | 463.42 | 360.77 | 8.0% | 38.8% | | Operating Margin | 50.6% | 49.6% | 47.5% | | | | Net Income Attributable to Shareholders | 452.30 | 398.27 | 325.26 | 13.6% | 39.1% | | Net Profit Margin | 45.7% | 42.7% | 42.8% | | | | Wafer Shipment (kpcs 12 inch-equiv.) | 4,085 | 3,718 | 3,338 | 9.9% | 22.4% | - Net revenue reached **NT$989.92 billion**, increasing **6.0% QoQ** and **30.3% YoY**[13](index=13&type=chunk) - Gross margin improved to **59.5%** (**+0.9 ppts QoQ**, **+1.7 ppts YoY**), and operating margin to **50.6%** (**+1.0 ppt QoQ**, **+3.1 ppts YoY**)[13](index=13&type=chunk) [I. Revenue Analysis](index=4&type=section&id=I.%20Revenue%20Analysis) Third quarter revenue growth was driven by strong demand for leading-edge process technologies. Advanced technologies (7nm and below) constituted 74% of total wafer revenue. High Performance Computing (HPC) and Smartphone platforms were the largest revenue contributors, with North America being the dominant geographic market - Revenue increased **6.0% quarter-over-quarter**, supported by strong demand for leading-edge process technologies[15](index=15&type=chunk) [Wafer Revenue by Technology](index=4&type=section&id=Wafer%20Revenue%20by%20Technology) Advanced technologies (7nm and below) accounted for 74% of total wafer revenue in 3Q25, with 5nm being the largest contributor at 37% Wafer Revenue by Technology (3Q25) | Technology | 3Q25 | 2Q25 | 3Q24 | | :--------- | :--- | :--- | :--- | | 3nm | 23% | 24% | 20% | | 5nm | 37% | 36% | 32% | | 7nm | 14% | 14% | 17% | | 16/20nm | 7% | 7% | 8% | | 28nm | 7% | 7% | 7% | - Advanced technologies (7nm and below) accounted for **74% of total wafer revenue** in 3Q25[15](index=15&type=chunk) [Net Revenue by Platform](index=4&type=section&id=Net%20Revenue%20by%20Platform) High Performance Computing (HPC) and Smartphone platforms were the primary revenue drivers, representing 57% and 30% of net revenue, respectively. Smartphone, IoT, and Automotive platforms saw sequential revenue increases Net Revenue by Platform (3Q25) | Platform | 3Q25 | 2Q25 | 3Q24 | | :------------------------ | :--- | :--- | :--- | | High Performance Computing | 57% | 60% | 51% | | Smartphone | 30% | 27% | 34% | | Internet of Things | 5% | 5% | 7% | | Automotive | 5% | 5% | 5% | | Digital Consumer Electronics | 1% | 1% | 1% | | Others | 2% | 2% | 2% | - Sequentially, revenue from Smartphone, IoT, and Automotive increased by **19%**, **20%**, and **18%** respectively. HPC revenue remained flat[16](index=16&type=chunk) [Net Revenue by Geography](index=4&type=section&id=Net%20Revenue%20by%20Geography) North America remained the largest geographic market, contributing 76% of total net revenue in 3Q25 Net Revenue by Geography (3Q25) | Geography | 3Q25 | 2Q25 | 3Q24 | | :---------- | :--- | :--- | :--- | | North America | 76% | 75% | 71% | | Asia Pacific | 9% | 9% | 10% | | China | 8% | 9% | 11% | | Japan | 4% | 4% | 5% | | EMEA | 3% | 3% | 3% | [II. Profit & Expense Analysis](index=4&type=section&id=II.%20Profit%20%26%20Expense%20Analysis) TSMC demonstrated improved profitability in 3Q25, with gross and operating margins expanding due to cost improvement efforts and higher capacity utilization. Net income and EPS saw substantial sequential and year-over-year growth [Gross Profit Analysis](index=4&type=section&id=Gross%20Profit%20Analysis) Gross margin increased to 59.5% in 3Q25, primarily driven by cost improvement efforts and a higher capacity utilization rate, despite some offset from unfavorable foreign exchange rates and dilution from overseas fabs Gross Profit Analysis (NT$ billion) | Metric | 3Q25 | 2Q25 | 3Q24 | | :---------- | :----- | :----- | :----- | | Net Revenue | 989.92 | 933.79 | 759.69 | | Cost of Revenue | (401.38) | (386.42) | (320.34) | | Gross Profit | 588.54 | 547.37 | 439.35 | | Gross Margin | 59.5% | 58.6% | 57.8% | - Gross margin of **59.5%** was **0.9 percentage points higher than 2Q25**, mainly due to cost improvement and higher capacity utilization, partially offset by unfavorable foreign exchange and overseas fab dilution[19](index=19&type=chunk) [Operating Income Analysis](index=5&type=section&id=Operating%20Income%20Analysis) Operating expenses increased slightly but decreased as a percentage of net revenue due to operating leverage, leading to a 1.0 percentage point sequential improvement in operating margin to 50.6% Operating Income Analysis (NT$ billion) | Metric | 3Q25 | 2Q25 | 3Q24 | | :--------------------------------------- | :------ | :------ | :------ | | Total Operating Expenses | (87.76) | (84.51) | (79.08) | | Research & Development | (63.74) | (61.28) | (52.78) | | SG&A | (24.02) | (23.23) | (26.30) | | Operating Income | 500.69 | 463.42 | 360.77 | | Operating Margin | 50.6% | 49.6% | 47.5% | | Total Operating Expenses as % of Net Revenue | 8.9% | 9.1% | 10.4% | - Total operating expenses increased by **NT$3.25 billion** to **NT$87.76 billion**, but decreased to **8.9% of net revenue** in 3Q25 from **9.1% in 2Q25**, driven by operating leverage[21](index=21&type=chunk) [Non-Operating Items](index=5&type=section&id=Non-Operating%20Items) Total non-operating items resulted in a gain of NT$24.68 billion in 3Q25, a decrease from 2Q25 primarily due to the absence of one-time gains recorded in the prior quarter Non-Operating Items (NT$ billion) | Metric | 3Q25 | 2Q25 | 3Q24 | | :------------------------ | :---- | :---- | :---- | | L-T Investments | 1.42 | 1.22 | 1.56 | | Net Interest Income (Expenses) | 23.22 | 21.50 | 19.97 | | Other Gains and Losses | 0.04 | 6.89 | 1.89 | | Total Non-Operating Items | 24.68 | 29.61 | 23.42 | - The decrease in non-operating gains from **NT$29.61 billion in 2Q25** to **NT$24.68 billion in 3Q25** was mainly due to the absence of one-time other gains in 2Q25[23](index=23&type=chunk) [Net Profit and EPS](index=5&type=section&id=Net%20Profit%20and%20EPS) Net income attributable to shareholders of the parent company increased significantly by 13.6% QoQ and 39.1% YoY, reaching NT$452.30 billion, with diluted EPS of NT$17.44 Net Profit and EPS (NT$ billion) | Metric | 3Q25 | 2Q25 | 3Q24 | | :-------------------------------------- | :----- | :----- | :----- | | Income before Tax | 525.37 | 493.03 | 384.19 | | Income Tax Expenses | (73.61) | (95.55) | (59.11) | | Effective Tax Rate | 14.0% | 19.4% | 15.4% | | Net Income Attributable to Parent Company | 452.30 | 398.27 | 325.26 | | Net Profit Margin | 45.7% | 42.7% | 42.8% | | EPS (NT$ per common share) | 17.44 | 15.36 | 12.54 | - Net income attributable to shareholders of the parent company was **NT$452.30 billion**, up **13.6% from 2Q25** and **39.1% from 3Q24**[25](index=25&type=chunk) [III. Financial Condition Review](index=6&type=section&id=III.%20Financial%20Condition%20Review) TSMC maintained a strong financial position in 3Q25, characterized by increased liquidity, stable working capital, and healthy net cash reserves. Inventory days decreased, while receivable days slightly increased [Liquidity Analysis (Balance Sheet Items)](index=6&type=section&id=Liquidity%20Analysis%20(Balance%20Sheet%20Items)) Total current assets increased, primarily due to a rise in cash and marketable securities, while total current liabilities decreased. This resulted in an improved current ratio of 2.7x and increased net working capital Liquidity Analysis (NT$ billion) | Metric | 3Q25 | 2Q25 | 3Q24 | | :---------------------- | :------- | :------- | :------- | | Cash & Marketable Securities | 2,751.06 | 2,634.43 | 2,167.60 | | Total Current Assets | 3,436.02 | 3,264.92 | 2,773.91 | | Total Current Liabilities | 1,275.91 | 1,377.31 | 1,080.40 | | Current Ratio (x) | 2.7 | 2.4 | 2.6 | | Net Working Capital | 2,160.11 | 1,887.61 | 1,693.51 | - Total current assets increased by **NT$171.10 billion**, mainly due to a **NT$116.63 billion increase in cash and marketable securities**[27](index=27&type=chunk) - Total current liabilities decreased by **NT$101.40 billion**, primarily due to a decrease in accrued liabilities and others[27](index=27&type=chunk) [Receivable/Inventory Days](index=6&type=section&id=Receivable%2FInventory%20Days) Days of receivable slightly increased to 25 days, while days of inventory decreased to 74 days, indicating efficient inventory management Receivable/Inventory Days | Metric | 3Q25 | 2Q25 | 3Q24 | | :------------------ | :--- | :--- | :--- | | Days of Receivable | 25 | 23 | 28 | | Days of Inventory | 74 | 76 | 87 | - Days of receivable increased by **2 days to 25 days** in 3Q25[29](index=29&type=chunk) - Days of inventory decreased by **2 days to 74 days** in 3Q25[30](index=30&type=chunk) [Debt Service](index=6&type=section&id=Debt%20Service) Net cash reserves increased by NT$100.07 billion to NT$1,756.61 billion in 3Q25, primarily due to the increase in cash and marketable securities Debt Service (NT$ billion) | Metric | 3Q25 | 2Q25 | 3Q24 | | :---------------------- | :------- | :------- | :------- | | Cash & Marketable Securities | 2,751.06 | 2,634.43 | 2,167.60 | | Interest-Bearing Debts | (994.45) | (977.89) | (994.97) | | Net Cash Reserves | 1,756.61 | 1,656.54 | 1,172.63 | - Net cash reserves increased by **NT$100.07 billion** to **NT$1,756.61 billion** in 3Q25[32](index=32&type=chunk) [IV. Cash Flow](index=7&type=section&id=IV.%20Cash%20Flow) In 3Q25, TSMC generated substantial net cash from operating activities, which largely offset cash used in investing activities (primarily capital expenditures) and financing activities (cash dividends). Free cash flow decreased sequentially due to lower operating cash flow [Quarterly Cash Flow Analysis](index=7&type=section&id=Quarterly%20Cash%20Flow%20Analysis) Net cash generated from operating activities totaled NT$426.83 billion, while net cash used in investing activities was NT$259.75 billion, mainly for capital expenditures. Net cash used in financing activities was NT$128.29 billion, primarily for cash dividends Quarterly Cash Flow Analysis (NT$ billion) | Metric | 3Q25 | 2Q25 | 3Q24 | | :------------------------------ | :------- | :------- | :------- | | Net Operating Sources/(Uses) | 426.83 | 497.07 | 391.99 | | Capital Expenditures | (287.45) | (297.22) | (207.08) | | Net Investing Sources/(Uses) | (259.75) | (228.49) | (195.51) | | Net Financing Sources/(Uses) | (128.29) | (119.70) | (83.64) | | Cash Position Net Changes | 106.24 | (30.28) | 87.65 | | Ending Cash Balance | 2,470.76 | 2,364.52 | 1,886.78 | - Net cash generated from operating activities was **NT$426.83 billion**, including **NT$525.37 billion from income before tax** and **NT$162.79 billion from depreciation & amortization**[34](index=34&type=chunk) - Net cash used in investing activities was **NT$259.75 billion**, primarily due to capital expenditures of **NT$287.45 billion**[35](index=35&type=chunk) [Free Cash Flow](index=7&type=section&id=Free%20Cash%20Flow) Free cash flow decreased by NT$60.47 billion to an inflow of NT$139.38 billion in 3Q25, primarily due to lower operating cash flow Free Cash Flow (NT$ billion) | Metric | 3Q25 | 2Q25 | 1Q25 | 4Q24 | | :------------ | :----- | :----- | :----- | :----- | | Free Cash Flow | 139.38 | 199.85 | 294.74 | 258.26 | - Free cash flow decreased by **NT$60.47 billion** to **NT$139.38 billion** in 3Q25, a result of lower operating cash flow[37](index=37&type=chunk) [V. CapEx](index=7&type=section&id=V.%20CapEx) Capital expenditures for TSMC on a consolidated basis totaled US$9.70 billion in 3Q25 Capital Expenditures (US$ billion) | Metric | 3Q25 | 2Q25 | 1Q25 | YTD | | :------------------ | :--- | :--- | :--- | :--- | | Capital Expenditures | 9.70 | 9.63 | 10.06 | 29.39 | - Capital expenditures for TSMC totaled **US$9.70 billion** in 3Q25[39](index=39&type=chunk) [VI. Recap of Recent Important Events & Announcements](index=8&type=section&id=VI.%20Recap%20of%20Recent%20Important%20Events%20%26%20Announcements) The TSMC Board of Directors approved a cash dividend of NT$5.00 for 2Q25, with specific ex-dividend, record, and distribution dates set for late 2025 and early 2026 - TSMC Board approved **NT$5.00 cash dividend for 2Q25**, with ex-dividend date of **December 11, 2025**, record date of **December 17, 2025**, and distribution date of **January 8, 2026**[40](index=40&type=chunk) [Investor Presentation](index=9&type=section&id=Investor%20Presentation) This section summarizes the investor conference agenda, reiterates safe harbor notices, and presents key financial highlights from the third quarter 2025 investor presentation [Agenda](index=10&type=section&id=Agenda) The investor conference agenda included welcome remarks, key messages from the CFO and Chairman/CEO, a review of 3Q25 financial results and 4Q25 outlook by the CFO, and a Q&A session - The agenda for the earnings conference included welcome remarks, key messages from **CFO Wendell Huang** and **Chairman & CEO C.C. Wei**, a review of **3Q25 financial results and 4Q25 outlook** by the CFO, and a Q&A session[43](index=43&type=chunk)[44](index=44&type=chunk) [Safe Harbor Notice (Presentation)](index=11&type=section&id=Safe%20Harbor%20Notice%20(Presentation)) This section reiterates the safe harbor provisions, emphasizing that forward-looking statements are subject to risks and uncertainties, and actual results may differ materially. It also references TSMC's Form 20-F for additional risk factors - TSMC's forward-looking statements are subject to significant risks and uncertainties, and actual results may differ materially[45](index=45&type=chunk) - Information on factors causing results to vary can be found in **TSMC's 2024 Annual Report on Form 20-F**[45](index=45&type=chunk) [Statements of Comprehensive Income (Presentation Summary)](index=12&type=section&id=Statements%20of%20Comprehensive%20Income%20(Presentation%20Summary)) A summary of key comprehensive income items for 3Q25, including actual results against guidance, showing strong performance with revenue, gross margin, and operating margin exceeding or meeting expectations Selected Items from Statements of Comprehensive Income (NT$ billion, unless otherwise noted) | Metric | 3Q25 | 3Q25 Guidance | 2Q25 | 3Q24 | 3Q25 Over 2Q25 | 3Q25 Over 3Q24 | | :--------------------------------------- | :----- | :------------ | :----- | :----- | :------------- | :------------- | | Net Revenue (US$ billion) | 33.10 | 31.8-33.0 | 30.07 | 23.50 | +10.1% | +40.8% | | Net Revenue | 989.92 | | 933.79 | 759.69 | +6.0% | +30.3% | | Gross Margin | 59.5% | 55.5%-57.5% | 58.6% | 57.8% | +0.9 ppts | +1.7 ppts | | Operating Margin | 50.6% | 45.5%-47.5% | 49.6% | 47.5% | +1.0 ppt | +3.1 ppts | | Net Income Attributable to Shareholders | 452.30 | | 398.27 | 325.26 | +13.6% | +39.1% | | EPS (NT Dollar) | 17.44 | | 15.36 | 12.54 | +13.6% | +39.0% | | ROE | 37.8% | | 34.8% | 33.4% | +3.0 ppts | +4.4 ppts | - **3Q25 Net Revenue (US$33.10 billion)** exceeded the high end of guidance (**US$31.8-33.0 billion**)[46](index=46&type=chunk) - Gross Margin (**59.5%**) and Operating Margin (**50.6%**) were above the high end of their respective guidance ranges (**55.5%-57.5%** and **45.5%-47.5%**)[46](index=46&type=chunk) [3Q25 Revenue by Technology (Presentation Chart)](index=13&type=section&id=3Q25%20Revenue%20by%20Technology%20(Presentation%20Chart)) This section visually represents the wafer revenue distribution by technology node for 3Q25, highlighting the significant contribution of advanced technologies (3nm, 5nm, 7nm) - The presentation includes a chart illustrating **3Q25 revenue distribution by technology**, with **3nm, 5nm, and 7nm** being the largest segments[48](index=48&type=chunk)[49](index=49&type=chunk) [3Q25 Revenue by Platform (Presentation Chart)](index=14&type=section&id=3Q25%20Revenue%20by%20Platform%20(Presentation%20Chart)) This section provides a visual breakdown of 3Q25 net revenue by platform, emphasizing the dominance of High Performance Computing and Smartphone segments - A chart in the presentation details **3Q25 revenue by platform**, showing **High Performance Computing** and **Smartphone** as the leading contributors[51](index=51&type=chunk)[52](index=52&type=chunk)[53](index=53&type=chunk)[54](index=54&type=chunk) [Balance Sheets & Key Indices (Presentation Summary)](index=15&type=section&id=Balance%20Sheets%20%26%20Key%20Indices%20(Presentation%20Summary)) A summary of key balance sheet items and financial indices for 3Q25, showing strong liquidity with a current ratio of 2.7x and efficient asset management Selected Items from Balance Sheets & Key Indices (NT$ billion) | Metric | 3Q25 | % of Total Assets | 2Q25 | % of Total Assets | 3Q24 | % of Total Assets | | :---------------------- | :------- | :---------------- | :------- | :---------------- | :------- | :---------------- | | Cash & Marketable Securities | 2,751.06 | 37.4% | 2,634.43 | 37.6% | 2,167.60 | 35.2% | | Inventories | 288.69 | 3.9% | 304.19 | 4.3% | 292.88 | 4.7% | | Total Assets | 7,354.11 | 100.0% | 7,006.35 | 100.0% | 6,165.66 | 100.0% | | Total Liabilities | 2,318.53 | 31.5% | 2,389.72 | 34.1% | 2,143.74 | 34.8% | | Total Shareholders' Equity | 5,035.58 | 68.5% | 4,616.63 | 65.9% | 4,021.92 | 65.2% | | A/R Turnover Days | 25 | | 23 | | 28 | | | Inventory Turnover Days | 74 | | 76 | | 87 | | | Current Ratio (x) | 2.7 | | 2.4 | | 2.6 | | - Total Assets increased to **NT$7,354.11 billion** in 3Q25, with **Total Shareholders' Equity representing 68.5% of total assets**[56](index=56&type=chunk) [Cash Flows (Presentation Summary)](index=16&type=section&id=Cash%20Flows%20(Presentation%20Summary)) A summary of cash flow activities for 3Q25, indicating strong cash generation from operations, significant capital expenditures, and a positive free cash flow, though lower than the previous quarter Cash Flows (NT$ billion) | Metric | 3Q25 | 2Q25 | 3Q24 | | :-------------------------- | :------- | :------- | :------- | | Beginning Balance | 2,364.52 | 2,394.80 | 1,799.13 | | Cash from operating activities | 426.83 | 497.07 | 391.99 | | Capital expenditures | (287.45) | (297.22) | (207.08) | | Cash dividends | (116.70) | (116.70) | (90.76) | | Ending Balance | 2,470.76 | 2,364.52 | 1,886.78 | | Free Cash Flow | 139.38 | 199.85 | 184.91 | - Cash from operating activities was **NT$426.83 billion**, while capital expenditures were **NT$287.45 billion**[58](index=58&type=chunk) - Free Cash Flow for 3Q25 was **NT$139.38 billion**[58](index=58&type=chunk) [Recap of Recent Major Events (Presentation)](index=17&type=section&id=Recap%20of%20Recent%20Major%20Events%20(Presentation)) This section reiterates the recent announcement regarding the Board's approval of the 2Q25 cash dividend and provides links for further details - TSMC Board of Directors approved **NT$5.00 cash dividend for 2Q25**, with specific ex-dividend, record, and distribution dates[60](index=60&type=chunk) - Further details and announcements are available on **TSMC's website** and the **Market Observation Post System**[61](index=61&type=chunk) [Consolidated Financial Statements (Unaudited)](index=19&type=section&id=Consolidated%20Financial%20Statements%20(Unaudited)) This section provides unaudited consolidated financial statements, including the balance sheet, statements of comprehensive income, and cash flow statements for the third quarter of 2025 [Consolidated Condensed Balance Sheet](index=19&type=section&id=Consolidated%20Condensed%20Balance%20Sheet) The consolidated balance sheet for September 30, 2025, shows a healthy financial position with total assets of NT$7,354.11 billion, an increase of 5.0% QoQ and 19.3% YoY. Cash and cash equivalents increased significantly, contributing to strong current assets Consolidated Condensed Balance Sheet Highlights (NT$ million) | Metric | Sep 30, 2025 | Jun 30, 2025 | Sep 30, 2024 | QoQ Change (NT$) | YoY Change (NT$) | | :-------------------------- | :----------- | :----------- | :----------- | :--------------- | :--------------- | | Cash and Cash Equivalents | 2,470,759 | 2,364,524 | 1,886,781 | 106,235 | 583,978 | | Total Current Assets | 3,436,015 | 3,264,918 | 2,773,914 | 171,097 | 662,101 | | Property, Plant and Equipment | 3,499,341 | 3,386,206 | 3,071,599 | 113,135 | 427,742 | | Total Assets | 7,354,107 | 7,006,350 | 6,165,658 | 347,757 | 1,188,449 | | Total Current Liabilities | 1,275,906 | 1,377,314 | 1,080,399 | (101,408) | 195,507 | | Total Liabilities | 2,318,529 | 2,389,718 | 2,143,736 | (71,189) | 174,793 | | Total Shareholders' Equity | 5,035,578 | 4,616,632 | 4,021,922 | 418,946 | 1,013,656 | - Total Assets increased by **NT$347,757 million (5.0%) QoQ** and **NT$1,188,449 million (19.3%) YoY**[65](index=65&type=chunk) - Cash and Cash Equivalents increased by **NT$106,235 million (4.5%) QoQ** and **NT$583,978 million (31.0%) YoY**[65](index=65&type=chunk) [Consolidated Condensed Statements of Comprehensive Income](index=20&type=section&id=Consolidated%20Condensed%20Statements%20of%20Comprehensive%20Income) The consolidated statements of comprehensive income show strong growth for both the three and nine months ended September 30, 2025. Net revenue, gross profit, and net income all increased significantly year-over-year, reflecting robust demand and improved operational efficiency 3Q25 Consolidated Condensed Statements of Comprehensive Income Highlights (NT$ million) | Metric | 3Q 2025 | 2Q 2025 | 3Q 2024 | QoQ Change (NT$) | YoY Change (NT$) | | :-------------------------- | :--------- | :--------- | :--------- | :--------------- | :--------------- | | Net Revenue | 989,918 | 933,792 | 759,692 | 56,126 | 230,226 | | Gross Profit | 588,543 | 547,369 | 439,345 | 41,174 | 149,198 | | Income from Operations | 500,685 | 463,423 | 360,766 | 37,262 | 139,919 | | Net Income | 451,755 | 397,493 | 325,080 | 54,262 | 126,675 | | Earnings per Share - Diluted | 17.44 | 15.36 | 12.54 | 2.08 | 4.90 | Nine Months Ended Sep 30, 2025 Consolidated Condensed Statements of Comprehensive Income Highlights (NT$ million) | Metric | 2025 | 2024 | YoY Change (NT$) | | :-------------------------- | :----------- | :----------- | :--------------- | | Net Revenue | 2,762,964 | 2,025,847 | 737,117 | | Gross Profit | 1,629,307 | 1,111,975 | 517,332 | | Income from Operations | 1,371,189 | 896,340 | 474,849 | | Net Income | 1,209,981 | 797,963 | 412,018 | | Earnings per Share - Diluted | 46.75 | 30.80 | 15.95 | - For the nine months ended September 30, 2025, net revenue increased by **36.4% YoY to NT$2,762,964 million**, and net income increased by **51.6% YoY to NT$1,209,981 million**[69](index=69&type=chunk) [Consolidated Condensed Cash Flow Statements](index=22&type=section&id=Consolidated%20Condensed%20Cash%20Flow%20Statements) The consolidated cash flow statements highlight strong cash generation from operating activities for both the quarter and the nine-month period. Significant capital expenditures were made, and cash dividends were paid, resulting in a net increase in cash and cash equivalents for 3Q25 Consolidated Condensed Cash Flow Statements Highlights (NT$ million) | Metric | Nine Months 2025 | 3Q 2025 | 2Q 2025 | 3Q 2024 | | :--------------------------------------- | :--------------- | :--------- | :--------- | :--------- | | Net Cash Generated by Operating Activities | 1,549,467 | 426,829 | 497,064 | 391,993 | | Property, Plant and Equipment Acquisitions | (915,505) | (287,452) | (297,226) | (207,079) | | Net Cash Used In Investing Activities | (778,433) | (259,752) | (228,489) | (195,509) | | Net Cash Used In Financing Activities | (332,660) | (128,294) | (119,700) | (83,639) | | Net Increase (Decrease) in Cash and Cash Equivalents | 343,132 | 106,235 | (30,280) | 87,654 | | Cash and Cash Equivalents at End of Period | 2,470,759 | 2,470,759 | 2,364,524 | 1,886,781 | - Net cash generated by operating activities for the nine months ended September 30, 2025, was **NT$1,549,467 million**[72](index=72&type=chunk) - Cash and Cash Equivalents at the end of 3Q25 increased by **NT$106,235 million QoQ** to **NT$2,470,759 million**[72](index=72&type=chunk)

Core Insights - TSMC's net profit increased nearly 40% in the last quarter, driven by the rise in artificial intelligence usage, reaching a record 452.3 billion new Taiwan dollars ($15 billion) [1] - The company's revenue rose 30% year-on-year in the last quarter, exceeding analysts' expectations [1] Company Developments - TSMC is constructing chip fabrication plants in the U.S. and Japan to mitigate risks from China-U.S. trade tensions [2] - The company is a key supplier for major firms like Apple and Nvidia, indicating strong demand for its products [2] - TSMC has committed $100 billion in U.S. investments, including new factories in Arizona, in addition to a previous pledge of $65 billion [3] Market Outlook - Analysts from Morningstar noted that demand for TSMC's products remains strong, suggesting resilience against potential tariffs on shipments to U.S. customers [2] - U.S. Commerce Secretary proposed a 50-50 division of chip production between Taiwan and the U.S., which Taiwan has rejected [2]