In the third quarter of 2025, Taiwan Semiconductor Manufacturing Co. reported revenue of $33.10 billion, up 40.8% year-over-year, driven by strong demand for its 5 nm and 3 nm process nodes. Net income reached $15.1 billion, yielding a record net profit margin of 45.7% and earnings per share of $0.58, a 39% increase from the prior year. These results underscore TSMC’s ability to convert advanced process leadership into industry-leading profitability, as it produced over 11,800 separate products across nearly 300 different process technologies in 2024 and continues to ramp volume production on its 2 nm node in early 2026.

TSMC serves a wide array of clients spanning AI hyperscalers, smartphone OEMs and automotive chipmakers, manufacturing chips for Nvidia, Apple, AMD, Qualcomm and Broadcom. According to company filings, 85% of all global semiconductor prototypes are produced at its facilities, giving investors exposure to multiple end markets. While AI workloads have accounted for an increasing share of revenue—23% from 3 nm and 37% from 5 nm in Q3 2025—TSMC’s longstanding role in legacy nodes provides a stable backlog even if near-term AI spending growth moderates.

Following a U.S. policy shift permitting approved sales of NVIDIA’s H200 GPUs to China, TSMC has been tapped to increase wafer volumes to meet orders exceeding 2 million units for 2026. With NVIDIA’s H200 list price of approximately $27,000 per chip—implying around $54 billion in downstream revenue—TSMC stands to capture a meaningful portion of that spend through foundry fees. Even a partial ramp could boost TSMC’s annual wafer revenue by several percentage points, while further validating its unique capacity advantage versus competing Asian foundries constrained by equipment export controls.