Citing surging AI demand and tight semiconductor supply chain capacity, TSMC is reportedly considering a 10%–20% price increase for its CoWoS advanced packaging services.
Samsung Electronics will reportedly use TSMC's 3nm process to produce base chips for NVIDIA's next-generation custom high-bandwidth memory (HBM), marking their first collaboration in HBM manufacturing. NVIDIA has asked Samsung, SK hynix, and Micron to use TSMC's process for NVHBM base chips, and Samsung accepted after internal review while keeping its in-house production for standard HBM and other clients.
Japan's Ministry of Economy, Trade and Industry approved TSMC's plan to produce 3nm process chips at its second Kumamoto plant, the first 3nm chip production in Japan, with a monthly capacity of 6,000 wafers. TSMC originally planned 6nm and 12nm production but shifted to higher-performance products due to rising AI demand.
At TSMC's Q3 2026 earnings call on October 15, Chairman and CEO C.C. Wei said AI demand remains extremely strong with no signs of slowing. He announced an additional 3nm wafer fab in Tainan (mass production expected in H1 2028), progress on three new global fabs, Arizona's second fab slated for Q3 2027 volume production, ongoing Texas evaluation and Terafab talks, N2 capacity expected to more than double in 2027, Q4 revenue guidance of $52.3-54.3 billion, and 2026 capex of $60-64 billion.
TSMC reported Q3 revenue of $46.6 billion, up 16% QoQ and about 2% above expectations, with Q4 guidance of $53.3 billion. Management confirmed 2026 capex of $60-64 billion and said 2026-2028 cumulative capex will far exceed the ~$101 billion total of 2023-2025.
During the interview, Jensen Huang recalled writing to Morris Chang to establish the TSMC partnership, saying he valued integrity and business boundaries in choosing TSMC. He noted that Chinese AI companies, severely constrained by computing power, are forced to design more efficient architectures while still actively raising funds to advance their businesses. He also discussed his nervousness about public speaking, his affection for gamers, and the need for hundreds of billions of dollars in investment in Taiwan's tech ecosystem.
TSMC has signed a five-year, $2 billion agreement with GlobalFoundries to produce silicon interposers for CoWoS packaging at GlobalFoundries' New York plant, with production ramping up in the first half of 2028. It is TSMC's first outsourcing of silicon interposers, marking the extension of a key AI packaging step to the United States.
On Oct. 8, TSMC reported September revenue of about NT$511.857 billion, up 54.6% year-on-year and down 0.6% month-on-month. Third-quarter revenue reached NT$1.49 trillion, up 51% year-on-year and above analyst expectations. Cumulative revenue for the first nine months totaled NT$3.899 trillion, up 41.1% year-on-year.
Musk responded to a report that TSMC is exploring cooperation with Terafab, saying the two sides are only at a discussion stage but could make progress. Options include TSMC owning and operating a new Texas fab, or Terafab holding a majority stake with TSMC providing technology and operations experience.
According to media reports on Oct. 2, TSMC is considering building a new campus in Texas with multiple wafer fabs, each costing at least $20 billion, adding tens of billions of dollars to its U.S. chip manufacturing expansion. The company has already committed $265 billion to its Arizona campus; the Texas investment depends on whether Congress extends tax benefits expiring at year-end.