Taiwan Semiconductor Manufacturing Company Limited Shows 2-Nanometer Growth

Taiwan Semiconductor Manufacturing Company Limited’s third-quarter 2026 results showed its 2-nanometer process gaining revenue share and high-performance computing expanding, while leaving sales to Nvidia or Advanced Micro Devices unquantified.

The three months ending Sept. 30 generated $46.72 billion in revenue, representing year-over-year growth of 41.2% and a quarter-over-quarter gain of 16.2%. The 2-nanometer revenue share reached 8%, compared with 3% in the second quarter. High-performance computing (HPC) brought in 68% of sales after expanding 22% from the prior quarter. The process figure measures wafer revenue, not production volume or available capacity, and HPC spans computing activity beyond AI chips alone. Three-nanometer chips accounted for 33% of wafer revenue and five-nanometer chips for 28%; the 2-, 3-, 5- and 7-nanometer processes together made up 79%.

Those totals do not identify which customers drove the shift. As of May 21, 2026, AMD’s next-generation EPYC processor, code-named Venice, was ramping production in Taiwan on TSMC’s 2-nanometer process. That describes the status at the time of the announcement; TSMC’s third-quarter figures do not update the ramp or assign revenue to Venice. AMD’s MI455X accelerator specifications, for a product in the MI450 Series, include TSMC’s 2- and 3-nanometer technologies. TSMC did not break out revenue by customer or product.

Nvidia uses TSMC among its wafer foundries and uses CoWoS for semiconductor packaging. The HPC increase offers an aggregate view of computing activity that includes AI, but it does not measure Nvidia’s orders. TSMC provided no numerical CoWoS capacity figure with the quarterly results.

Gross margin was 66.4%, down 1.3 percentage points from the previous quarter, as the initial 2-nanometer ramp weighed on the result. TSMC Chairman and CEO C.C. Wei said, “the demand is higher than the supply.” TSMC expects annual capacity for its N2 technology family to more than double in 2027, citing demand from smartphones and HPC/AI applications; it gave no comparison baseline. For the fourth quarter, the company forecast revenue of $52.3 billion to $54.3 billion, gross margin of 65% to 67% and operating margin of 56.5% to 58.5%.