TSMC’s Q 2 net profit hits new high, Wei Zhejia announces investment of another US$100 billion in the United States
Semiconductor foundry giant TSMC announced its second-quarter financial report on Thursday afternoon. Its net profit increased by 77.4% to NT$706 billion, equivalent to approximately US$22.4 billion, far exceeding market expectations. Specifically, TSMC achieved revenue of NT$1.27 trillion (US$39.45 billion) in the second quarter, higher than analysts' expectations of NT$1.264 trillion; net profit was also higher than the expected NT$632.64 billion, breaking historical records for five consecutive quarters and achieving profit growth for ten consecutive quarters.
Semiconductor foundry giant TSMC announced its second-quarter financial report on Thursday afternoon. Its net profit increased by 77.4% to NT$706 billion, equivalent to approximately US$22.4 billion, far exceeding market expectations. Specifically, TSMC achieved revenue of NT$1.27 trillion (US$39.45 billion) in the second quarter, higher than analysts' expectations of NT$1.264 trillion; net profit was also higher than the expected NT$632.64 billion, breaking historical records for five consecutive quarters and achieving profit growth for ten consecutive quarters. TSMC said that advanced chip processes of 7 nanometers and below accounted for 77% of total wafer revenue in the second quarter. Among them, 2-nanometer chip shipments accounted for 3% of total wafer revenue, 3-nanometer chips accounted for 30%, 5-nanometer chips accounted for 33%, and 7-nanometer chips accounted for 11%. TSMC’s production capacity determines the market share of cutting-edge chips to some extent, and major technology giants are currently snapping up cutting-edge chips to meet the growing demand for data centers. Therefore, TSMC’s performance is also regarded as one of the indicators reflecting the prosperity of artificial intelligence spending. TSMC’s shares have risen more than 56% so far this year, with Taiwan stocks rising 1.23% on Thursday. Its market value is currently about $1.95 trillion, nearly twice that of rival Samsung Electronics. TSMC CEO Wei Zhejia pointed out in the financial report conference that it is impossible to give a specific number for the market growth brought by artificial intelligence because this wave is getting stronger and stronger. However, he revealed that the company will invest an additional US$100 billion in the United States to build new semiconductor logic fabs and advanced packaging plants with 2-nanometer and below technologies. He added that four factories were under consideration. TSMC has previously committed to investing US$165 billion in the United States, and the new investment brings this figure to US$265 billion. Wei Zhejia also revealed that TSMC expects year-on-year revenue growth in 2026 to be slightly more than 40%. TSMC Chief Financial Officer Huang Renzhao said that TSMC will increase its capital expenditure budget for 2026 to between US$60 billion and US$64 billion. As long as business opportunities exist, TSMC will continue to increase capital expenditures without hesitation. The investment commitment to continue to expand production capacity and the optimistic performance guidance are undoubtedly a shot in the arm for analysts. Simon Chen, chief analyst at Omdia, said that market concerns about the artificial intelligence bubble are exaggerated. The demand currently being seen is structural, underpinned by large-scale, tangible capital expenditures by hyperscale data center operators. (