TSMC Reports Strong June Revenue, Exceeds Q2 Forecast Amid AI Demand Surge

TSMC said on Monday that June revenue rose 67.9% year on year to NT$398.27 billion (€10.8bn), bringing the first-half of the year revenue to NT$2.4 trillion (€65.4bn), a 35.6% increase from the same period in 2025.

Based on the company's monthly revenue disclosures, second-quarter revenue amounted to roughly NT$1.27 trillion, ahead of the NT$1.264 trillion (€34.4bn) consensus forecast from 20 analysts surveyed by LSEG.

Monday's release covers June revenue and cumulative first-half sales only.

TSMC will publish its full second-quarter earnings on Thursday, including net profit, gross margin, operating margin and updated financial guidance.

The road ahead

At its April earnings presentation, TSMC said it expects full-year 2026 revenue to grow by more than 30% in US dollar terms and projected capital expenditure of between $52 billion (€45.5bn) and $56 billion (€49bn) as it expands manufacturing capacity to meet AI-driven demand.

New fabrication plants are under construction or in preparation in Arizona, Japan and Germany, reflecting both the scale of customer demand and government efforts to strengthen domestic semiconductor manufacturing.

Shares in TSMC rose about 1% following Monday's revenue update.

Investors will now turn their attention to Thursday's full earnings report for updates on profitability, margins, full-year guidance and the rollout of the company's two-nanometre manufacturing technology, which is already attracting strong customer interest.

The AI engine

The company sits at the centre of one of the largest investment cycles in the semiconductor industry's history.

Many of the world's leading AI processors, including Nvidia's GPUs and much of the custom AI silicon designed by Amazon, Google and Microsoft, are manufactured by TSMC in Taiwan.

At the company's April earnings presentation, CEO Che-Chia Wei described AI demand as "extremely robust", driven by the shift from chatbots that answer questions to agentic AI systems capable of taking actions.

That transition requires significantly greater computing power, increasing demand for the advanced chips TSMC manufactures.

Advanced technologies, defined as chips produced using process technologies of seven nanometres or smaller, accounted for 74% of wafer revenue in the first quarter.

TSMC's three-nanometre technology alone contributed 25% of wafer revenue.

Reports have indicated that Nvidia has reserved roughly 60% of TSMC's advanced chip-packaging capacity for 2026, highlighting continued supply constraints across the AI semiconductor market.