TSMC(US:TSM) Di Yi Cai Jing·2025-10-16 08:58Core Insights - TSMC reported significant growth in revenue and net profit for Q3 2025, driven by strong demand for advanced processes, particularly in AI applications [2][4] - The company anticipates continued robust growth in AI demand and has adjusted its capital expenditure plans accordingly [5][6] Financial Performance - TSMC's consolidated revenue for Q3 2025 reached NT$989.92 billion, a year-on-year increase of 30.3%, equivalent to US$33.1 billion [2] - Net profit for the same quarter was NT$452.3 billion, marking a 39.1% year-on-year growth and setting a historical record [2] - Gross margin improved to 59.5%, up 0.9 percentage points from the previous quarter [2] Product Composition - Advanced process revenues (7nm and below) accounted for over 70% of total wafer revenue, with 3nm process contributing 23%, 5nm at 37%, and 7nm at 14% [2] - High-Performance Computing (HPC) represented 57% of revenue, surpassing smartphones at 30%, IoT at 5%, automotive at 5%, and digital consumer electronics at 1% [2] Future Outlook - TSMC forecasts Q4 2025 sales between US$32.2 billion and US$33.4 billion, exceeding market expectations of US$31.23 billion [3] - The company expects a gross margin of 59% to 61% for Q4 and anticipates a 30% revenue growth for 2025 [3] Strategic Initiatives - TSMC plans to continue investing to support customer growth in response to strong AI demand, with a focus on advanced packaging and process technologies [4][6] - The company is accelerating capacity expansion at its Arizona facility and has begun construction on a second wafer fab in Japan [4] Capital Expenditure - TSMC has raised its capital expenditure ceiling for the year, with a total of US$29.39 billion spent in the first nine months [5] - The company aims to allocate approximately 70% of its capital expenditure to advanced processes, with 10% to 20% for advanced packaging and other areas [6]