On July 16, 2026, Taiwan Semiconductor Manufacturing Company (TSMC) reported second-quarter 2026 consolidated revenue of NT$1,270.38 billion (US$40.20 billion), up 36.0 percent year over year, with net income of NT$706.56 billion and diluted EPS of NT$27.25 (US$4.31 per ADR), both up 77.4 percent from a year earlier. Gross margin reached 67.7 percent, operating margin 60.3 percent, and net profit margin 55.6 percent.
The results underline how concentrated the AI buildout has become at the leading edge of chip manufacturing. Advanced technologies (7-nanometer and below) accounted for 77 percent of total wafer revenue in the quarter: 2-nanometer contributed 3 percent in its first meaningful revenue quarter, 3-nanometer 30 percent, 5-nanometer 33 percent, and 7-nanometer 11 percent. CFO Wendell Huang attributed the quarter to strong demand for leading-edge process technologies and pointed to a steep ramp-up of 2-nanometer ahead.
TSMC guided third-quarter 2026 revenue to between US$44.6 billion and US$45.8 billion with gross margin of 65 to 67 percent, implying continued acceleration. Because TSMC fabricates the AI accelerators sold by Nvidia, AMD, and the custom-silicon programs of the major cloud providers, its results are the broadest single indicator of real AI infrastructure spending, and this quarter showed the spending cycle accelerating rather than plateauing in 2026.