TSMC's second-quarter profits surged 77%, announcing an additional investment of US$100 billion in Arizona
Global wafer foundry leader The financial report for the second quarter of 2026 was announced on July 16. Net profit for the quarter increased by 77.4% year-on-year to NT$706.56 billion (approximately US$22 billion), setting a record high for the fifth consecutive quarter and significantly exceeding market expectations. Revenue for the quarter was NT$1.27 trillion (approximately US$40.2 billion), a year-on-year increase of 36%. TSMC Chairman Wei Zhejia said at the earnings call that demand for artificial intelligence continues to be strong, and the company raised its full-year U.S. dollar revenue growth forecast from "more than 30%" to "slightly more than 40%." High-performance computing business (including AI chips) accounts for 66% of total revenue, and smartphones account for 22%. Advanced processes (7nm and below) contributed 77% of total wafer revenue, of which 3nm and 5nm technologies accounted for 30% and 33% respectively. In addition to its impressive performance, TSMC announced that it will invest an additional US$100 billion in Arizona, USA, to build wafer fabs and advanced packaging facilities for 2-nanometer and more advanced processes. At this point, TSMC’s total investment commitments in Arizona have reached $265 billion. The company said the move is designed to meet strong demand from key U.S. customers for many years to come and support the development of the U.S. semiconductor ecosystem. At the same time, TSMC raised its 2026 capital expenditure budget to US$60 billion to US$64 billion, higher than its previous guidance of US$52 billion to US$56 billion. The company expects third-quarter revenue to be between $44.6 billion and $45.8 billion. Despite the impressive performance, TSMC’s U.S. stock price fell about 4% in pre-market trading. Market analysts believe that investors are concerned about the cash flow pressure caused by huge capital expenditures and the sustainability of future growth.