[TSMC: It is expected that Q4 demand will continue to be strong. The CPU demand for AI intelligent agents far exceeds the current supply capacity] October 15th, TSMC released its third quarter 2026 results on the afternoon of October 15th and held an analyst meeting to introduce performance guidance, industry demand, capital expenditures, process/capacity and other aspects. The core content is as follows: (1) About performance guidance ① The company expects sales in the fourth quarter to be US$52.3 billion to US$54.3 billion, while the market estimates US$50.35 billion; the company expects gross profit margin in the fourth quarter to be 65-67% (66.4% in the third quarter). ② The company expects revenue in 2026 to grow by approximately 44% in U.S. dollars, compared with the previous forecast of slightly more than 40%. ③There is no upper limit to profitability, but substantial improvement will not happen overnight. (2) Regarding the demand for artificial intelligence ① We have firm confidence in the general trend of artificial intelligence. The demand for AI continues to grow, and demand in Q4 is expected to continue to be strong. ②The CPU demand for AI agents is growing, and the demand still far exceeds the current supply capacity. (3) Regarding capital expenditures ①Capital expenditure in 2026 is expected to be US$60 billion-64 billion. ② We will remain cautious in our business planning for 2027, and it is too early to disclose the amount of capital expenditures after this year. (4) About process/capacity ① The demand for advanced processes is very strong, and a new 3-nanometer process wafer fab will be built in Tainan. ②We are discussing with Musk whether we can utilize TeraFab’s idle production capacity. Any factory cooperation must be led by TSMC. ③We are considering expanding U.S. production capacity outside of Arizona and are conducting site selection evaluations in Texas. ④The A14 chip will start mass production in 2028.