TSMC Achieves Record Net Profit in 2Q26 on Rising AI Chip Demand

TSMC delivered its highest-ever quarterly net profit in the second quarter of 2026, buoyed by surging demand for artificial intelligence semiconductors. The chipmaker’s gross margin surpassed company projections, extending a streak of robust earnings growth and reinforcing its dominant position as a key supplier to major technology companies. In the three months ended June, Taiwan Semiconductor Manufacturing Co. reported a net profit of NT$706.6 billion, representing a 77.4% increase compared to the same period in the previous year. This performance outpaced analyst expectations, with the reported figure beating the NT$623.73 billion projected by Bloomberg. The latest result marks the ninth straight quarter in which TSMC has achieved double-digit growth in net earnings. Second-quarter revenue reached NT$1.27 trillion, up 36% compared to the prior year’s corresponding period. Earnings per share climbed to NT$27.25, higher than NT$15.36 a year ago and NT$22.08 in the preceding quarter. The upswing was fueled by heightened global demand for AI chips, with TSMC’s manufacturing expertise supporting key clients including NVIDIA and Apple. Advanced semiconductor products using process technology below 7 nanometers contributed to 77% of wafer sales, reflecting a shift towards high-performance chips. Improved production efficiency and greater capacity utilization lifted gross margin to 67.7% for the quarter, outstripping the company’s earlier forecast range of 65.6% to 67.5%. Gross margin also advanced by 9.1 percentage points year-on-year and rose 1.5 points from the previous quarter. Over the first six months of 2026, TSMC recorded NT$1.28 trillion in net profit, a 68.3% year-on-year increase, while earnings per share reached NT$49.32, up from NT$29.30 in the same period last year. For the first half, gross margin stood at 67%, an improvement of 8.3 percentage points year-on-year.