TSMC Reports 77 Percent Profit Surge Driven by AI Chip Demand

Taiwan Semiconductor Manufacturing Company reported a 77.4 percent year-over-year increase in second-quarter profit on July 16, 2026, marking its fifth straight quarter of record earnings.

Net income reached NT$706.56 billion, well above analyst expectations of NT$632.64 billion. Revenue came in at NT$1.27 trillion, or about 39.45 billion U.S. dollars, a 36 percent increase from the same period last year.

High-performance computing, which includes AI-related applications, accounted for 66 percent of TSMC's revenue in 2026. The company supplies chips to Nvidia, Apple, and Broadcom, among others. Its advanced packaging technology, known as CoWoS, has become a key part of how companies build large AI systems.

TSMC announced an additional 100 billion dollar investment in Arizona, bringing its total commitment to the state to 265 billion dollars. The new funds will go toward semiconductor logic wafer fabs focused on 2-nanometer production and advanced packaging facilities.

The company raised its capital expenditure budget for 2026 to between 60 billion and 64 billion dollars. It also plans to raise prices for 3-nanometer wafer fabrication by up to 15 percent in the second half of the year.

TSMC forecast third-quarter revenue between 44.6 billion and 45.8 billion dollars, with an operating profit margin of 56 to 58 percent.

The company holds approximately 73 percent of the global pure-play foundry market as of the first quarter of 2026, a position that has made it central to both the AI boom and ongoing geopolitical competition over semiconductor supply chains.