Taiwan Semiconductor Manufacturing Company (TSMC) announced record second-quarter results on July 16, with consolidated revenue of NT$1,270.38 billion (US$40.20 billion) — a 36% year-over-year surge driven by insatiable demand for AI chips.
Net income reached NT$706.56 billion, up 77.4% from the same period last year. Diluted earnings per share came in at NT$27.25 (US$4.31 per ADR unit). Compared to the first quarter of 2026, revenue grew 12% and net income rose 23.4%.
The numbers underscore how deeply AI is reshaping the semiconductor industry. Advanced technologies — defined as 7-nanometer and smaller — accounted for 77% of total wafer revenue. Inside that: 2-nanometer (3% of revenue, ramping fast), 3-nanometer (30%), 5-nanometer (33%), and 7-nanometer (11%).
"Our business in the second quarter was supported by strong demand for our leading-edge process technologies," said Wendell Huang, TSMC's Senior VP and Chief Financial Officer.
For the third quarter, management expects revenue between US$44.6 billion and US$45.8 billion, with gross margins between 65% and 67%. The company raised its full-year revenue growth outlook to slightly above 40% and increased 2026 capital expenditure to between $60 and $64 billion.
TSMC's results come amid a period of heightened geopolitical tension around semiconductors. Earlier this week, the U.S. Commerce Department signaled new regulatory action on AI chips and semiconductors. Meanwhile, China's surprise AI breakthroughs continue to rattle chip markets and deepen semiconductor trade disputes.
Shares of TSMC have risen more than 70% year-to-date, reflecting the market's conviction that the AI-driven semiconductor boom has room to run.
