Trade The News story
Reports Q3 (NT$) Net 763.1B v 746.3Be (v 452.3B y/y), Op 876.5B v 849.6Be (v 500.7B y/y), Rev 1.49B v 1.49T prelim
- Op margin: 58.7% v 50.6% y/y
- Gross margin: 66.4% v 59.5% y/y v 66.5%e
- Capex: $13.8B v $9.7B y/y v $15Be; YTD Capex: $40.6B v $29.4B y/y
- Management Commentary: In the third quarter, revenue increased 17.6% quarter over-quarter, as our business was supported by strong demand for our leading-edge process technologies. By technology, 2nm process technology contributed 8% of total wafer revenue in 3Q26, while 3nm, 5nm, and 7nm accounted for 33%, 28%, and 10% respectively. Advanced technologies (7nm and below) accounted for 79% of total wafer revenue. By platform, HPC and Smartphone represented 68% and 21% of net revenue respectively, while IoT, Automotive, DCE, and Others each represented 4%, 4%, 1%, and 2%. Sequentially, revenue from HPC, Smartphone, IoT, and Automotive increased 22%, 10%, 5%, and 23% respectively. DCE and Others decreased 12% and 10% respectively from 2Q26. From a geographic perspective, revenue from customers based in North America accounted for 79% of total net revenue in 3Q26, while revenue from Asia Pacific, China, Japan, and EMEA (Europe, Middle East, and Africa) accounted for 10%, 5%, 3%, and 3% of total net revenue respectively.
- Gross margin: 66.4% v 59.5% y/y v 66.5%e
- Capex: $13.8B v $9.7B y/y v $15Be; YTD Capex: $40.6B v $29.4B y/y
- Management Commentary: In the third quarter, revenue increased 17.6% quarter over-quarter, as our business was supported by strong demand for our leading-edge process technologies. By technology, 2nm process technology contributed 8% of total wafer revenue in 3Q26, while 3nm, 5nm, and 7nm accounted for 33%, 28%, and 10% respectively. Advanced technologies (7nm and below) accounted for 79% of total wafer revenue. By platform, HPC and Smartphone represented 68% and 21% of net revenue respectively, while IoT, Automotive, DCE, and Others each represented 4%, 4%, 1%, and 2%. Sequentially, revenue from HPC, Smartphone, IoT, and Automotive increased 22%, 10%, 5%, and 23% respectively. DCE and Others decreased 12% and 10% respectively from 2Q26. From a geographic perspective, revenue from customers based in North America accounted for 79% of total net revenue in 3Q26, while revenue from Asia Pacific, China, Japan, and EMEA (Europe, Middle East, and Africa) accounted for 10%, 5%, 3%, and 3% of total net revenue respectively.