Taiwan Semiconductor Manufacturing Company (TSMC) posted second-quarter revenue of $39.62 billion, up 36% from a year earlier, beating both its own guidance and analyst expectations as surging demand for artificial intelligence chips continued to drive growth across the company’s portfolio.
TSMC’s April-June revenue came in at T$1.27 trillion, slightly above the T$1.264 trillion LSEG SmartEstimate drawn from 20 analysts, according to Reuters. The company had guided for second-quarter revenue between $39.0 billion and $40.2 billion when it reported first-quarter earnings in April. This marks the world’s largest contract chipmaker’s continued acceleration on the back of relentless AI demand from major customers including Nvidia and Apple.
June alone showed exceptional momentum, with TSMC reporting revenue of T$442.68 billion ($13.8 billion), a 67.9% year-on-year surge and a 6.2% monthly increase from May. The strong June finish carried the entire quarter to record territory, underscoring sustained customer appetite for advanced chips used in AI servers and data-center infrastructure.
TSMC is expected to report a 58.8% year-on-year rise in second-quarter net profit when it releases full earnings on Thursday, according to LSEG SmartEstimate. The company guided for gross margin in the 65.5% to 67.5% range for the quarter, with some market reports suggesting actual performance may reach near 70%, pointing to pricing power and operational efficiency gains amid the AI buildout.
The Q2 beat extends TSMC’s streak of outperformance. In the first quarter of 2026, the company posted revenue of $35.90 billion, up 35.1% year-over-year, and achieved a gross margin of 66.2%, already elevated by historical standards. That Q1 result prompted TSMC to raise its full-year 2026 revenue growth forecast to above 30%, up from an earlier expectation of roughly 30% growth in US dollar terms.
TSMC’s sustained momentum reflects the intensity of competition among cloud providers and enterprises to secure advanced AI chips. In June, TSMC CEO indicated the company was “working very hard” to meet demand and that customers remained “positive on outlook for AI,” signaling that supply constraints are likely to persist through the second half of 2026. The company has committed to capital expenditure of $52 billion to $56 billion in 2026, well above 2025 levels, to expand manufacturing capacity and address the AI-driven surge.
The semiconductor industry broadly is riding the AI wave. Deloitte estimated in February 2026 that the global AI chip market would reach approximately $300 billion in 2026, a figure that has already been revised upward as demand accelerated beyond initial expectations. TSMC’s ability to capture a disproportionate share of this demand—as the foundry of choice for leading AI accelerator designers—has positioned the company for record profitability this year.
Sources
- Reuters — TSMC Q2 revenue of T$1.27 trillion ($39.62 billion), up 36% year-over-year, beating analyst estimates; June revenue up 67.9% YoY; expected Q2 net profit rise of 58.8%
- TSMC Investor Relations — Q2 guidance of $39.0–40.2 billion revenue; gross margin guidance of 65.5%–67.5%; Q1 actual revenue of $35.90 billion and gross margin of 66.2%; full-year 2026 revenue growth forecast above 30%
- Forbes — Q2 gross margin guidance range and analyst outlook for 2026; TSMC’s status as beneficiary of AI investments
- Deloitte — Global AI chip market estimated at approximately $300 billion in 2026
- Reuters (June 2026) — TSMC CEO commentary on customer positivity and supply constraints continuing
