TSMC June revenue surges 68% YoY; Q2 beats guidance at $39.6B on AI chip demand

TSMC reported June revenue of NT$442.68 billion ($13.8 billion), a 67.9% year-over-year jump and the strongest month in company history. For Q2 2026, total revenue reached NT$1.27 trillion (~$39.6 billion), beating the top end of TSMC's own guidance of $39–40.2 billion. First-half 2026 revenue hit NT$2.4 trillion ($75 billion), up 35.6% from H1 2025. TSMC shares rose 1% on the announcement.

The surge reflects sustained AI chip demand. Advanced technologies (7nm and smaller) accounted for 74% of wafer revenue in Q1, with 3nm alone contributing 25%. TSMC is sold out on N3, its most advanced manufacturing process used for AI GPUs and CPUs. The company is expanding advanced packaging capacity to meet demand, adding two new facilities at Chiayi Science Park in southern Taiwan. Analysts estimate TSMC is on track to generate over $40 billion in AI chip revenue in 2026—nearly one-quarter of total revenue. NVIDIA has reserved roughly 60% of TSMC's advanced packaging capacity for the year.

For architects tracking chip supply and pricing, TSMC's beat signals no near-term relief in fab capacity tightness or AI GPU allocations. N3 is fully subscribed; lead times remain extended. TSMC is investing $52–56 billion in capex in 2026 (a record, up 25% YoY), with 70–80% targeted at advanced nodes—a commitment that shows foundries expect AI demand to stay robust through 2027. The Q2 earnings call on July 16 will be critical for guidance; any softening in forward demand or commentary on customer destocking could break the bull case.