TSMC October Revenue Rises as AI Demand Tightens
TSMC October revenue hit a record as AI-chip demand tightened 3nm capacity and spurred a $40B capex plan, shifting flows to node suppliers.
KEY TAKEAWAYS
- TSMC reported October revenue of $11.9 billion, a monthly record and 16.9% YoY gain.
- 3nm capacity is fully booked through 2026, with NVIDIA securing about 30% share.
- A $40.0 billion annual capex plan targets 3nm and packaging to expand capacity.
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Taiwan Semiconductor Manufacturing Co. (TSMC) reported October revenue of $11.9 billion on Nov. 10, 2025, setting a monthly record. The company raised its 2025 revenue growth forecast to nearly 35%, citing strong demand for AI chips that tightened capacity and boosted its outlook, though analysts noted uncertainty about the sustainability of this surge.
October Revenue, Guidance, and Margins
TSMC’s October revenue rose 16.9% year-over-year and 11.0% sequentially, marking its slowest monthly growth since February 2024 despite the record figure. The company set fourth-quarter revenue guidance between $32.2 billion and $33.4 billion. Gross margin for the third quarter was 59.5%, with a forecast of 59.0% to 61.0% for the fourth quarter. The company reported no material regulatory actions or approvals in the past 72 hours.
AI Chip Demand and Capacity Constraints
Demand for AI chips is expected to double in 2025, with AI processors now generating about 20% of industry revenue while accounting for less than 0.2% of wafer volume. TSMC’s advanced-node production lines, including 3-nanometer and 5-nanometer processes, are fully booked through 2026. NVIDIA has secured roughly 30% of TSMC’s 3nm capacity for its Blackwell GPUs.
To meet demand, TSMC plans to invest about $40 billion annually in capital expenditures focused on advanced process nodes and packaging technologies such as 3nm and chip-on-wafer-on-substrate (CoWoS). Analysts linked the tight capacity and large client allocations to the company’s raised revenue forecast but cautioned about the uncertain durability of AI-driven demand.
