TSMC (2330 TT / TSM) guides Q4 revenue between USD 52.3-54.3bln (exp. 48.8bln); guides Q4 gross margin 65-67% (exp. 66.1%), guides operating margin between 56.5-58.8% (exp. 58.0%); affirms FY26 capex; raises FY26 revenue in USD terms

CAPEX Affirmed at USD 60-64bln (prev. 60-64bln). "We continue to expect our capex dollars investment from 2026 to 2028 to be even more significantly higher than the past 3 years, as we continue to invest heavily to support our customers' growth." "We are moving full speed ahead to increase our capacity to meet our assessed demand and stepping up our Capex investment to support our customers' future growth." GUIDANCE Raises FY26 revenue in USD terms to +44% (prev. +40%). AI Underscore their view that semiconductors will remain essential in the AI megatrend. "The AI market continues to be very strong, recent developments are very positive to AI's long-term demand outlook" "We observe increasing AI demand fueled by the rising adoption of agentic AI as we transition from chatbot to AI assistance." "AI-related demand is being supported by strong underlying demand for AI accelerators, in addition the emergence of agentic AI CPUs and the continual demand for networking chips are driving further silicon demand." N2/A12 "We expect our N2 family technologies are annual capacity to more than double in 2027, supported by strong demand from both smartphone and HPC AI applications" (Q&A) TSMC, on A14, it says they've seen more and more customers and it's actually higher than two-nanometer activity thus far and they do expect that A14 will be a bigger node than the current N2 tech. CAPACITY "Historically we do not add additional capacity to a node once it reaches its targeted capacity. However, based on our assessment, we are executing well on our global capacity plan to add three new fabs to support the robust multi-year pipeline of demand for 3-nanometer technologies." "In Taiwan, volume production for our new 3-nanometer fab in Tainan Science Park is well on track to begin the first half of 2027. " "In addition, driven by the strong demand from our customers, we have decided to add one additional 3-nanometer fab in Tainan volume production is scheduled for the first half of 2028." In Arizona, "Volume production will begin in third quarter 2027, slightly ahead of our previous schedule." In Japan, "we are processing well to our plan to utilize 3-nanometer in our second fab, and volume production is scheduled in 2028." TSMC wants to capture every pieces of business possible. SUPPLY/DEMAND (Q&A) "We still think the demand is higher than the supply and we are working very hard to narrow the gap" . (Q&A) "Demand is very extremely robust, and we did not see any sign of slowdown. Whether it's high 50 CAGR, it doesn't matter. It probably will be higher." (Q&A) "Demand is extremely robust and getting higher and higher... demand is very very high." (Q&A) "The gap between demand and supply are still quite big and that's why we put all our strengths to increase the capacity." (Q&A) AI demand is extremely robust, and working hard to narrow the gap. (Q&A) "Definitely we have a little bit shortage on the backend and we like to work with our partner, with GlobalFoundries (GFS)" PROFITABILITY (Q&A) "There's no ceiling for TSMC's profitability. But a dramatic increase will not happen overnight either." (Q&A) "pricing strategy is very strategic it also depends on the market segment... Once we offer the flexibility of the physical location like in the US it will be a little bit different from the one we produce in Taiwan." EXPANSION (Q&A) US government are very helpful with regards to expansion plans. (Q&A) Texas is a location being considered for expansion. (Q&A) Are doing everything we can wherever we can to increase our capacity to meet the strong demand from the customers. Accelerating everywhere including in the US. COLLABORATION (Q&A) TSMC, on the subject of collaboration, says that in the scenario of fab collaboration, it would then have to be a facility run by TSMC itself. (Q&A) TSMC, on whether they would sublet or permit the reselling and the creation of a secondary wafer market, says the main answer is no, but there are some very specific cases that do permit it, although generally it's a no. (Q&A) Still working very closely with ASML (ASML NA) to establish the relevant INA products by 2031. CAPEX (Q&A) Too early to share Capex number beyond this year. (Q&A) Have a strong conviction about the AI mega-trend. (Q&A) Tool price inflation is real. (Q&A) Capex from 2026 to 2028 is expected to be significantly higher than the past three years. (Q&A) The majority of the Capex is always related to the long-term demand.