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TSMC Earnings Preview: Focus on Margins and Capex Amid AI Boom

Electronic Technology · Semiconductors · economic_daily · 2026-10-10

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TSMC's upcoming earnings call will center on AI-driven revenue growth, the impact of 2nm ramp-up on margins, and potential upward revisions to capital expenditure.

What Happened

Earnings Spotlight: TSMC is set to report its third-quarter financial results on the 15th, with market attention fixed on revenue growth driven by robust AI demand. Analysts expect the company to post a strong quarterly revenue of $46 billion, marking a significant double-digit increase.

Margin Dynamics: The ongoing ramp-up of the 2nm process is expected to exert temporary pressure on gross margins. Projections suggest a slight decline in margins for the third and fourth quarters to 67.5% and 67.3%, respectively, as the company absorbs initial production costs.

Capex Trajectory: Investors are closely watching for updates on capital expenditure, as AI demand continues to necessitate aggressive capacity expansion. Forecasts indicate that TSMC may raise its capex for the next two years to $85 billion and $98 billion, underscoring the company's commitment to growth.

Strategic Expansion: Beyond financial metrics, the potential announcement of expansion plans in Texas remains a key point of interest for market participants. Regardless of specific site announcements, the sustained demand for AI-related foundry services remains the primary catalyst for TSMC's long-term capacity strategy.

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