TSMC’s revenue in October hit a new monthly high, with cumulative revenue for the first ten months exceeding that of 2024

TSMC, the leading wafer foundry, announced October revenue data. The revenue in October was NT$367.473 billion, an increase of 11.0% from September and an increase of 16.9% from the same period in 2024, setting a new single-month record. Cumulatively, revenue in the first ten months of 2025 was approximately NT$3.13 trillion, an increase of 33.8% from the same period in 2024, exceeding the full-year revenue of 2024 of NT$2.89 trillion.

Consolidated revenue in the third quarter was 989.92 billion yuan, net profit was 452.30 billion yuan, and diluted EPS was 17.44 yuan ($2.92 per American depositary receipt). Compared with the same period in 2024, third-quarter revenue increased by 30.3%, and net profit and diluted EPS increased by 39.1% and 39.0% respectively. Compared with the second quarter of 2025, third-quarter results showed revenue growth of 6.0% and net income growth of 13.6%.

Looking forward to the fourth quarter of 2025, revenue is expected to be between US$32.2 billion and US$33.4 billion. If calculated based on the mid-point exchange rate assumption (1 U.S. dollar to NT$30.6), revenue fell 1% from the third quarter, but the annual growth rate was 22%. Gross profit margin ranges from 59% to 61%. At the midpoint, gross margin is expected to be 60%, an increase of 50 basis points from the third quarter. This growth was primarily driven by more favorable foreign exchange rates, but was partially offset by continued dilution from overseas fabs. Operating profit margin is expected to be between 49% and 51%.

TSMC stated that it will use Arizona to grow its scale and continue its efforts to improve its operational optimization cost structure. The company will leverage its fundamental competitive advantages of its manufacturing technology leadership and large-scale production base to become the most efficient and cost-effective manufacturer in every region in which it operates. The company will also continue to work closely with customers and suppliers to manage the impact of overseas expansion.

Regarding the impact of overseas expansion on gross profit margin, the company provided the latest dilution expectations. Huang Renzhao said that although the cost of overseas wafer fabs is still high, thanks to the expansion of the company's overall scale, it is expected that the gross profit margin dilution caused by the commissioning of overseas wafer fabs in the second half of 2025 will be close to 2%. The full-year gross profit margin dilution forecast for 2025 has been revised from the original 2% to 3% to 1% to 2%. Looking into the next few years, the company predicts that the gross profit margin dilution caused by overseas wafer fabs will remain at 2% to 3% in the early stage, and expand to 3% to 4% in the later stage.