A logo of Taiwan Semiconductor Manufacturing Company (TSMC) is seen during the TSMC global RnD Center opening ceremony in Hsinchu on July 28, 2023
Amber Wang | Afp | Getty Images
Taiwan Semiconductor Manufacturing Co on Thursday reported a 77.4% jump in second-quarter profit year on year, soaring past estimates as the world’s largest contract-chipmaker continues to set consecutive record-breaking milestones.
Here are TSMC’s second-quarter results against LSEG SmartEstimates, which are weighted toward forecasts from analysts who are more consistently accurate:
- Revenue: 1.27 trillion new Taiwan dollars ($39.45 billion ) vs. NT$1.264 trillion expected
- Net income: NT$706.56 billion vs. NT$632.64 billion expected
The company forecast third-quarter revenue between $44.6 billion and $45.8 billion, with operating profit margin of 56% to 58%. “AI related demand continues to be extremely robust,” said TSMC Chairman C.C. Wei.
TSMC will invest an additional $100 billion in Arizona to meet strong customer demand, bringing its total investment in the state to $265 billion, Wei added.
“This is to build several or more semiconductor logical wafer fab for two nanometer MP [mass production] technologies, as well as advanced packaging fabs to support the strong multi-year demand from our leading U.S. customers,” Wei added.
The company also raised its budget to between $60 billion and $64 billion for this year as it continues to invest heavily to support customers’ growth, said CFO Wendell Huang.
The Taiwanese tech giant’s net income for the three months ended in June came in at a record high for a fifth consecutive quarter, and surged 23.4% from the prior quarter.
TSMC is sitting on real leverage but choosing not to fully use it, said Sravan Kundojjala, an analyst at SemiAnalysis. “Net, they have far more pricing power than they are currently exercising,” Kundojjala said, adding that while the chipmaker is capturing more value through selective price increases, it remains deliberate rather than opportunistic to keep margins healthy without squeezing customers.
Kundojjala said that the memory boom is now squeezing TSMC’s non-AI business. “Consumer and price-sensitive end markets took a hit from rising memory prices and tight component supply.
Revenue surged to NT$1.27 trillion, a 36% jump from NT$933.79 billion in the same period year ago. Advanced technologies — 7-nanometer and under — accounted for 77% of total wafer revenue, the company said.
The 5-nanometer process technology accounted for 33% of TSMC’s second-quarter revenue, followed by 3-nanometer at 30%, Huang said in the earnings call Thursday.
For 2026 revenue by platform, the company said high-performance computing accounted for 66% of its revenue, followed by smartphones at 22% and Internet of Things at 5%.
Asia’s most valuable company that has been riding robust demand for AI chips it manufactures for global tech giants, including Nvidia, Apple and Broadcom saw shares gain 1.23% Thursday. The stock has risen over 58% so far this year.
