TSM台積電2025Q3

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## DATE

Oct. 16, 2025

## CALL PARTICIPANTS

Chief Financial Officer — Jen-Chau Huang
Chief Executive Officer — C.C. Wei
Director of Investor Relations — Jeff Su
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## TAKEAWAYS

Revenue -- $33.1 billion in revenue for fiscal Q3 2025, up 10.1% sequentially, exceeding prior company guidance.
Gross Margin -- 59.5% gross margin in fiscal Q3 2025, rising sequentially by 0.9 percentage points due to cost improvements and capacity utilization, outperforming guidance by 2.0 percentage points.
Operating Margin -- 50.6% operating margin in fiscal Q3 2025, a sequential increase of 1.0 percentage point from fiscal Q2.
EPS -- TWD 17.44 in the third quarter, growing 39% year-over-year.
Return on Equity (ROE) -- ROE was 37.8% in the third quarter.
Revenue by Technology -- 3-nanometer contributed 23% of wafer revenue, 5-nanometer accounted for 37% of wafer revenue, and 7-nanometer 14% of wafer revenue; advanced nodes (7-nanometer and below) represented 74% of wafer revenue.
Revenue by Platform -- High-performance computing held 57% of revenue, and digital consumer electronics declined 20% to 1% of revenue.
Cash and Marketable Securities -- USD 90 billion at quarter-end.
Capital Expenditure -- $9.7 billion for the third quarter; full-year 2025 CapEx now guided to $40 billion-$42 billion (narrowed from $38 billion-$42 billion).
Gross Margin Guidance (Q4) -- 59%-61% gross margin guidance for fiscal Q4 2025; operating margin expected between 49%-51% for fiscal Q4 2025.
2025 Revenue Guidance -- Management expects full-year 2025 revenue to grow in the "mid-30s percent" year-over-year in U.S. dollar terms.
Overseas Fabs Dilution -- Gross margin impact for full-year 2025 revised to 1%-2% (from previous 2%-3%), guidance for the longer-term ramp is 2%-3% in the early stages and widens to 3%-4% in the later stages, based on development stage.
CapEx Allocation -- Roughly 70% of 2025 CapEx allocated to advanced process, 10%-20% of 2025 CapEx allocated to specialty technologies, 10%-20% of 2025 CapEx allocated to advanced packaging, testing, mask making, and others.
Capacity Expansion -- Arizona’s site progressing rapidly; plans to acquire additional land for a future giga fab cluster; new advanced packaging facilities in Arizona announced; first Kumamoto (Japan) fab in volume, with second fab under construction; Dresden (Germany) fab construction started.
2-Nanometer Technology -- Volume production "on track" for later this quarter; N2P and A16 extensions scheduled for second half 2026.
Inventory and Receivables -- Inventory days decreased by 2 to 74; accounts receivable turnover rose by 2 days to 25.
Dividend -- TWD 117 billion distributed as the Q4 2024 cash dividend during this period.

## SUMMARY

Management indicated that AI-related demand exceeded prior estimates as of fiscal Q3 2025, strengthening expectations for secular growth across process technology and capacity planning. Engagement lead times with customers have expanded to up to three years, suggesting Taiwan Semiconductor Manufacturing Company ( TSM +2.79% ) receives earlier indications of demand trends compared to prior cycles. A higher level of annual CapEx is directly correlated with future growth opportunities, according to management, who added that revenue growth has continued to outpace CapEx increases in recent years. The company highlighted a disciplined process for forecasting and risk management, particularly for AI and cloud-related capital spending, involving closer collaboration with customers’ customers.
Management stated that "demand on leading edge semiconductor is real," citing "very strong signals from our customers' customers" for additional capacity.
C.C. Wei said, "AI demand actually continue to be very strong, it's more -- more stronger than we thought 3 months ago," and further noted the previously disclosed mid-40s percent CAGR for AI accelerators "it's a little bit better than that."
Jen-Chau Huang explained, "if we do our job right, the growth of our business, of our revenue should outpace the growth of the CapEx," describing historical and expected trends.
The company confirmed that advanced packaging revenue is approaching 10% of total revenue, as system-level performance becomes increasingly critical for customers’ designs.
Regarding the impact of export restrictions on China, management expressed confidence that "the AI's growth will be very dramatically," even if channels to China are limited.

## INDUSTRY GLOSSARY

CoWoS : Chip-on-Wafer-on-Substrate, TSMC’s advanced 2.5D packaging technology enabling multiple dies to be integrated side-by-side on a silicon interposer for high bandwidth and performance computing applications.
A16 : TSMC's most advanced logic technology featuring Super Power Rail (SPR), designed for high-performance computing products requiring dense power delivery and compressed signal routing.
N2, N2P : TSMC’s nomenclature for its 2-nanometer (N2) and enhanced 2-nanometer (N2P) process technologies, targeting energy efficiency and performance leadership.
Foundry 2.0 : TSMC’s strategic framework integrating both front-end (wafer fab) and back-end (advanced packaging) foundry services to address system-level customer needs.
OSAT : Outsourced Semiconductor Assembly and Test; companies specializing in package, assembly, and test services for semiconductor manufacturers such as TSMC.

## Full Conference Call Transcript

Jen-Chau Huang: Thank you, Jeff. Good afternoon, everyone. Thank you for joining us today. My presentation will start with financial highlights for the third quarter 2025. After that, I will provide the guidance for the fourth quarter 2025. Third quarter revenue increased 6% sequentially in NT as our business was supported by strong demand for our leading-edge process technologies. In U.S. dollar terms, revenue increased 10.1% sequentially to $33.1 billion, slightly ahead of our third quarter gui