Taiwan Semiconductor Manufacturing Co. (TSMC) reported a record-breaking third-quarter net profit of NT$763.1 billion ($46.36 billion), marking a 68.7% increase compared to the same period last year. This surpasses estimates and continues the company’s streak of six consecutive quarters of record profits, driven largely by growing global demand for artificial intelligence (AI) chips. TSMC’s revenue also beat expectations, totaling NT$1.49 trillion against a forecast of NT$1.47 trillion.

The company’s operating margin for the quarter reached 58.7%, beating the upper limit of its prior guidance and reflecting strong pricing power amid the AI boom. In terms of technological contributions, 3-nanometer chips represented the largest portion of TSMC’s revenue at 33%, with 5-nanometer and 7-nanometer chips following. High-performance computing platforms made up the bulk of sales at 68%, while smartphones contributed 21%. Automotive applications saw the fastest growth, expanding 23% quarter-over-quarter.

TSMC’s free cash flow surged to NT$476.56 billion in the third quarter from NT$139.38 billion a year earlier, enabling the company’s board to approve a NT$7.00 cash dividend for the second quarter. This financial strength supports TSMC’s ongoing expansion plans in the United States, including a $265 billion investment initiative in Arizona. The chipmaker is also reportedly evaluating an additional manufacturing investment in Texas to further bolster its U.S. presence.

These impressive financial results underscore TSMC’s pivotal role in the semiconductor industry and its leadership in powering the AI-driven technology wave. With sustained growth in high-performance computing demand and strategic facility expansions in the U.S., the company is well-positioned to maintain its strong market performance and address the increasing appetite for advanced chips worldwide.