issued Thursday, July 16, 2026 · 11:28 am
[TAIPEI] TSMC, the world’s largest maker of cutting-edge AI chips, said on Thursday (July 16) that it is expected to report a 59% increase in net profit from April to June, marking its fifth consecutive quarter of record profits, driven by rising global demand for AI infrastructure.
Analysts said demand remained strong for Taiwan Semiconductor Manufacturing Co.’s (TSMC) 3-nanometer and 2-nanometer process technologies for AI chips and the company’s advanced chip packaging technology CoWoS.
This takes Asia’s most valuable company, a major supplier to Nvidia and Apple, to new heights. The company’s market capitalization now stands at about $1.95 trillion, about twice that of South Korean rival Samsung Electronics.
TSMC is expected to report a net profit of NT$632.6 billion (US$19.65 billion) in the second quarter, according to LSEG SmartEstimate compiled from 18 analysts. SmartEstimates places more emphasis on consistently accurate analyst forecasts.
A financial results briefing to announce third-quarter and updated full-year forecasts is scheduled for 6:00 a.m. Japan time. If the result exceeds NT$572.5 billion, the company’s quarterly net profit will be the highest ever and mark the 10th consecutive quarter of profit growth.
The company announced Monday that second-quarter sales rose 36% to a record high, beating market expectations.
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Analysts widely expect TSMC to raise its full-year sales growth outlook, and will be watching to see if it also increases capital spending, a key indicator of management’s confidence in the sustainability of AI demand.
In its last earnings call in April, the company said capital spending in 2026 would reach the upper end of its previous forecast of $52 billion to $56 billion.
TSMC is investing US$165 billion to build a chip factory in Arizona, USA. TSMC’s Taipei-listed shares have risen 57.4% so far this year, in line with the broader market. Reuters
