Podcast
Oct 16, 2026 · 7 min · 7 segments
TSMC posted record profit without raising its capital budget, and its overseas factories are expected to weigh on margins. We also cover Meta's model-hosting terms, GitHub's advisory security scans…
Revenue reached US$46.72 billion, up 41.2% in that currency.
Management raised its full-year revenue growth forecast to about 44% in US dollars.
But it kept the company's 2026 capital budget at US$60-64 billion.
That budget didn't rise in this announcement.
Demand includes advanced chips for AI accelerators, processors, and networking equipment.
Still, these results cover all of TSMC, and the company didn't report a separate AI revenue figure.
New factories also bring costs.
TSMC expects its overseas factories to reduce its overall gross margin by about two percentage points in 2026.
It expects that effect to reach three to four percentage points over the next few years.
Though those estimates are forecasts, and so is its revenue outlook.
Its next results will show whether revenue reached that range and how much it costs to bring the new factories online.
TSMC can produce chips profitably without proving that each customer's AI service makes money.
Revenue reached US$46.72 billion, up 41.2% in that currency.
Management raised its full-year revenue growth forecast to about 44% in US dollars.
But it kept the company's 2026 capital budget at US$60-64 billion.
That budget didn't rise in this announcement.
Demand includes advanced chips for AI accelerators, processors, and networking equipment.
Still, these results cover all of TSMC, and the company didn't report a separate AI revenue figure.
New factories also bring costs.
TSMC expects its overseas factories to reduce its overall gross margin by about two percentage points in 2026.
It expects that effect to reach three to four percentage points over the next few years.
Though those estimates are forecasts, and so is its revenue outlook.
Its next results will show whether revenue reached that range and how much it costs to bring the new factories online.
TSMC can produce chips profitably without proving that each customer's AI service makes money.
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