Core Viewpoint - TSMC reported a significant increase in revenue for October 2025, with a month-over-month growth of 11% and a year-over-year growth of 16.9% [1] Financial Performance - TSMC's consolidated revenue for October 2025 was approximately 367.47 billion New Taiwan Dollars (NTD), equivalent to about 84.45 billion RMB [1] - For the third quarter of 2025, TSMC's consolidated revenue reached approximately 989.92 billion NTD (about 227.48 billion RMB), reflecting a year-over-year increase of 30.3% [2] - The net profit for the third quarter was around 452.3 billion NTD (approximately 103.94 billion RMB), marking a year-over-year increase of 39.1% [2] - Earnings per share for the third quarter were 17.44 NTD, which is a 39.0% increase compared to the previous year [2] Advanced Technology and Production - In the third quarter, the shipment volume of 3nm process technology accounted for 23% of total wafer revenue, while 5nm and 7nm processes accounted for 37% and 14%, respectively [3] - Advanced process technologies, defined as 7nm and above, constituted 74% of total wafer revenue [3] Capital Expenditure - TSMC's capital expenditure for the first nine months of 2025 totaled 29.39 billion USD (approximately 209.49 billion RMB), indicating sustained high levels of investment to expand capacity in response to strong demand [3]

Core Viewpoint - TSMC is set to increase prices for advanced processes starting in September 2023, with expected price hikes of 3% to 10% for 2026, reflecting rising production costs while maintaining stable customer relationships [1][2] Group 1: Pricing Strategy - TSMC has begun discussions with clients regarding price increases for advanced processes, which will vary based on individual customer procurement levels and cooperation [1] - The anticipated price increase for TSMC's 3nm process is expected to be at least a single-digit percentage for 2026, continuing a trend of price adjustments for the fourth consecutive year [1][2] - TSMC's pricing strategy is guided by long-term partnerships rather than opportunistic pricing, emphasizing value delivery to clients [1] Group 2: Revenue and Growth Drivers - Advanced processes, particularly the 5nm and 3nm families, accounted for 60% of TSMC's revenue in Q2 and Q3 of this year, with 3nm contributing 23% and 5nm 37% [2] - The company is expected to benefit from growing demand in AI applications, with forecasts suggesting that AI-related revenue could reach 35% of TSMC's total income by 2028, potentially being achieved earlier [2] - The semiconductor industry is experiencing a price increase trend driven by AI applications, with wafer fabs planning to raise foundry prices by 2026 [2]

Core Viewpoint - TSMC reported record high revenue and net profit for Q3 2025, indicating strong growth in advanced semiconductor processes [1] Financial Performance - Revenue for Q3 2025 reached NT$989.92 billion, a year-on-year increase of 30.3% and a quarter-on-quarter increase of 6% [1] - Net profit for the same period was NT$452.3 billion, marking a record high, with a year-on-year increase of 39.1% and a quarter-on-quarter increase of 13.6% [1] - Gross margin for Q3 2025 was 59.5%, operating margin was 50.6%, and net profit margin after tax was 45.7% [1] Product Mix - 3nm process shipments accounted for 23% of TSMC's wafer sales revenue in Q3 2025 [1] - 5nm process shipments represented 37% of total wafer sales revenue for the quarter [1] - 7nm process shipments made up 14% of the total wafer sales revenue [1] - Overall, revenue from advanced processes (including 7nm and more advanced) constituted 74% of total wafer sales revenue for the quarter [1]

Group 1 - Samsung Electronics' foundry division has secured orders for 7nm and 8nm processes from AI chip design companies, including Nintendo, improving capacity utilization [1] - Samsung's 3nm process is facing challenges, with a yield rate around 50%, while TSMC has achieved over 90% yield, raising concerns about Samsung's competitiveness in advanced processes [1][2] - Major clients like Google are shifting from Samsung's 3nm process to TSMC, indicating a loss of trust in Samsung's foundry capabilities due to yield issues [2] Group 2 - Apple, Qualcomm, NVIDIA, and MediaTek are adopting TSMC's third-generation 3nm process, with plans to transition to 2nm starting in 2026 [2] - The semiconductor industry emphasizes the importance of trust between foundries and clients, and Samsung's yield problems have led to skepticism about its foundry business [2]