TSMC on Thursday posted a document quarterly revenue and raised its earnings outlook, as sturdy demand for synthetic intelligence chips continues to gasoline development on the world’s largest contract chipmaker.
Taiwan-based TSMC reported earnings per share of $4.31 for the April-June interval, beating analysts’ expectations.
Income got here in at $40.2 billion (36.8 billion euros), beating analysts’ expectations of $39.63 billion (34.6 billion euros).
In native forex phrases, web revenue rose 77% year-on-year to a document excessive of NT$706.6 billion (€19.1 billion), whereas gross sales rose 36% to NT$1.27 trillion (€36.8 billion) as demand for the superior chips that TSMC makes for patrons corresponding to Nvidia and Apple exhibits no indicators of slowing.
The Hsinchu-based firm’s efficiency is being watched as a measure of the broader sector and broader AI demand itself, simply as traders fear about the potential of a bubble provided that it makes semiconductors for almost each main chip designer.
CEO Che-Chia Wei described international AI-related demand as “very sturdy” and mentioned he expects it to stay very sturdy till round 2029 or 2030. Based mostly on this, TSMC now forecasts gross sales development in 2026 to be simply over 40% 12 months over 12 months, an upward revision from earlier steerage of over 30%.
Thursday’s numbers confirmed what month-to-month gross sales information had already steered.
As reported on Monday, June gross sales have been up 67.9% 12 months over 12 months, and first-half gross sales have been up 35.6% over the identical interval in 2025, barely above analysts’ consensus estimates for the quarter.
TSMC shares rose about 1% after the earnings launch, however pared their beneficial properties later as a sell-off in AI-related shares weighed on pan-Asia benchmarks throughout Thursday buying and selling.
Enlargement of US manufacturing
Together with this outcome, TSMC introduced that it’s going to spend an extra $100 billion (€87.4 billion) to develop its manufacturing capability in america, on prime of the $165 billion (€144 billion) it has already dedicated to constructing six manufacturing crops in Arizona.
This brings the corporate’s complete funding commitments to america to roughly $265 billion (€231 billion).
The brand new funding will fund 4 extra factories in Arizona devoted to cutting-edge chips under 2 nanometers and is geared toward “supporting sturdy multi-year demand” from key U.S. clients, CEO Che-Chia Wei mentioned on the corporate’s earnings name.
TSMC additionally introduced that it’s going to spend greater than beforehand deliberate this 12 months, growing its capital expenditure finances from the earlier vary of $52 billion (45.4 billion euros) to $56 billion (48.9 billion euros) to $60 billion (52.4 billion euros) to $64 billion (55.9 billion euros).
The announcement builds on a commerce deal signed earlier this 12 months between the Trump administration and Taiwan, beneath which Taiwanese corporations have been promised to speculate not less than $250 billion (218 billion euros) in U.S. know-how in return for decrease tariffs.
