Taiwan Semiconductor Manufacturing (TSM) Outlines Its Capex Plan Alongside Its Guidance for Q4

Core Insights - Taiwan Semiconductor Manufacturing Company Limited (TSM) reported a consolidated revenue of $33.09 billion and a net income of $15.10 billion for Q3 [3] - The company has revised its 2025 capital expenditure guidance to a range of $40 billion to $42 billion, reflecting strong demand in AI-related sectors [3][4] - TSM expects Q4 revenue to be between $32.2 billion and $33.4 billion, indicating a 22% year-over-year increase at the midpoint [5] Capital Expenditure and Growth Strategy - TSM's capital expenditure plan allocates 70% of the budget to advanced process technologies, with 10-20% each for specialty technologies and advanced packaging [3] - The company reassured investors that increased capital spending will drive future growth opportunities and deliver profitable returns [4] Q4 Guidance - TSM's Q4 guidance includes a projected gross margin of 59% to 61% and an operating margin of 49% to 51% [5] - The company has assumed an exchange rate of USD 1 to TWD 30.6 for its Q4 projections [5] Market Position - TSM serves leading global technology companies by designing and manufacturing integrated circuits and advanced semiconductors [6]