Taiwan Semiconductor Manufacturing Company Limited Q3 2025 Earnings Recap

TSMC reported a robust 10.1% sequential revenue growth in Q3 2025, driven by strong demand for advanced process technologies, while guidance for Q4 suggests a slight revenue decrease but robust year-over-year growth.

Key Takeaways

• Q3 2025 revenue reached $33.1 billion, slightly above guidance, with a gross margin increase to 59.5%.
• Advanced technologies (7nm and below) accounted for 74% of wafer revenue; 3nm technology comprised 23%.
• Cash flow from operations was strong, totaling TWD 427 billion ($14.3 billion), with a cash balance of TWD 2.5 trillion ($90 billion).
• Q4 revenue guidance is projected between $32.2 billion and $33.4 billion, representing a slight sequential decline but a 22% increase year-over-year at the midpoint.
• Capital expenditures for 2025 are expected to range from $40 billion to $42 billion, primarily supporting advanced process technologies amidst strong AI-related demand.