TSMC reported a 67.9% year-on-year rise in June

Source Credit : Portfolio Prints

Taiwan Semiconductor Manufacturing Co. (TSMC) reported a sharp 67.9% year-over-year increase in June revenue on Monday, underscoring the sustained strength of demand for artificial intelligence chips ahead of its second-quarter earnings announcement later this week.

For the first half of 2026, the world's largest contract chipmaker generated total revenue of NT$2.4 trillion (approximately $75 billion), marking a 35.6% increase from the same period a year earlier. June revenue reached NT$442.68 billion, up 6.2% from May, highlighting continued momentum despite a period that has historically seen weaker month-over-month performance.

Investors responded positively to the update, with TSMC shares rising 1% on Monday.

According to Sravan Kundojjala, an analyst at SemiAnalysis, the figures were particularly impressive because second-quarter revenue surpassed the upper end of TSMC's guidance range of $40.2 billion. He noted that the performance was especially notable given that June revenue has typically declined from the previous month during the past four years.

"The demand-supply situation in AI remains extremely tight, and TSMC's N3 process capacity is effectively sold out," Kundojjala said. "The technology is being adopted by nearly all leading AI GPU and CPU developers this year."

TSMC plays a central role in the global semiconductor industry, manufacturing advanced chips for applications ranging from smartphones and consumer electronics to high-performance AI computing systems. Its customer base includes major U.S. technology companies such as Nvidia, Apple, and Advanced Micro Devices (AMD), all of which are investing heavily in AI-driven products and infrastructure.

Kundojjala estimates that TSMC could generate more than $40 billion in AI-related chip revenue in 2026, representing nearly one-quarter of the company's total annual revenue. Such growth would further cement AI as one of the most important drivers of the semiconductor industry's expansion.

The company is also expanding its production capabilities to meet rising demand. According to a Reuters report citing Taiwan's National Science and Technology Council Minister Wu Cheng-wen, TSMC plans to build two additional advanced chip-packaging facilities at the Chiayi Science Park in southern Taiwan. Wu stated that the first facility is already in mass production, while the second is expected to begin operations in the near future.

TSMC's dominant position in the semiconductor manufacturing industry continues to strengthen. Data from Counterpoint Research shows the company held a 73% share of the global pure-play foundry market during the first quarter of 2026, reinforcing its leadership in producing chips for external customers.

Investors will closely watch TSMC's second-quarter earnings report, scheduled for July 16, for further insight into the sustainability of AI-driven demand and the company's growth outlook for the remainder of the year.