TSMC Posts Record 77 Percent Profit Surge, Pledges 100 Billion More for US Chip Expansion

Taiwan Semiconductor Manufacturing Company reported a record second-quarter net profit of NT$706.6 billion, or approximately $22 billion, in July 2026. That figure represents a 77 percent increase compared to the same period a year earlier.

The results were driven by strong demand for artificial intelligence chips. TSMC reported a 36 percent year-on-year revenue increase to NT$1.27 trillion, or about $39 billion. The company raised its 2026 annual revenue growth forecast to slightly above 40 percent, up from its previous guidance of over 30 percent.

TSMC Chairman and CEO C.C. Wei said global AI-related demand is "extremely robust" and expressed confidence that momentum would persist through 2029 or 2030. The company increased its 2026 capital expenditure budget to a range of $60 billion to $64 billion, up from the prior estimate of $52 billion to $56 billion.

The company pledged an additional $100 billion to expand US manufacturing, bringing its total US investment commitment to $265 billion. The new capital will fund four additional fabrication plants in Arizona focused on advanced chip technologies of 2 nanometers and below.

These facilities will complement six fabrication plants already planned for the Arizona site as part of a previously announced $165 billion commitment. The expansion is part of a broader agreement with the US administration that included commitments for at least $250 billion in total US technology sector investment in exchange for reduced tariffs on Taiwanese goods.

TSMC said the investments are designed to strengthen the US semiconductor supply chain and create high-paying technology jobs.