The chipmaker's net income rose 77% year-over-year in the second quarter, beating analyst estimates, as AI chip demand remains strong
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Taiwan Semiconductor Manufacturing Co. reported second-quarter net income of NT$706.56 billion, a 77.4% increase from the same period a year earlier and a record for the fifth consecutive quarter, the company said Thursday. Chief Executive Officer C.C. Wei also announced an additional $100 billion investment in Arizona, bringing TSMC $TSM's total committed spending in the state to $265 billion.
Second-quarter revenue came in at NT$1.27 trillion ($40.20 billion), up 36% year-over-year. The results topped Wall Street expectations. Analysts had anticipated revenue of NT$1.264 trillion and net income of NT$632.64 billion, according to CNBC.
For 2026, TSMC lifted its capital expenditure outlook to a range of $60 billion to $64 billion, compared with previous guidance of $52 billion to $56 billion, the company said. TSMC also indicated that aggregate capital spending across the coming three years would outpace what it spent in the three years prior, according to Reuters.
On the Arizona investment, Wei said the funds would go toward building additional semiconductor wafer fabrication facilities capable of 2-nanometer mass production, as well as advanced packaging facilities. He indicated that roughly four more plants could eventually be constructed there, on top of the eight already announced or underway, though he said timing would hinge on how market conditions develop, according to Reuters.
"We believe this investment will help to further foster the development of the U.S. semiconductor ecosystem, strengthen the supply chain, and support an increasing number of high-tech, high-paying jobs in the United States," Wei said.
For the third quarter, TSMC forecast revenue between $44.6 billion and $45.8 billion, with an operating profit margin of 56% to 58%, the company said. Senior Vice President and Chief Financial Officer Wendell Huang said demand for leading-edge process technologies, including a steep ramp-up of 2-nanometer production, would underpin performance in the period.
Chips made on 7-nanometer or smaller nodes represented 77% of total wafer revenue during the quarter. The 5-nanometer node led all process technologies with a 33% share, with 3-nanometer close behind at 30%.
As TSMC reported earlier this month, June revenue reached NT$442.68 billion, a 67.9% jump from a year earlier and the highest monthly sales figure in the company's history. The June result lifted second-quarter revenue to the top of TSMC's own guidance range. By end-market platform, high-performance computing — the category that includes AI chips — generated 66% of second-quarter revenue, with smartphones contributing 22%, the company said.
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