TSMC announced consolidated revenue of NT$1,270.38 billion, net income of NT$706.56 billion, and diluted earnings per share of NT$27.25 (US$4.31 per ADR unit) for the second quarter ended June 30, 2026.
Year-over-year, second quarter revenue increased 36.0%, while net income and diluted EPS both increased 77.4%. Compared to first quarter 2026, second quarter results represented a 12.0% increase in revenue and a 23.4% increase in net income. All figures were prepared in accordance with TIFRS on a consolidated basis.
In US dollars, second quarter revenue was $40.20 billion, which increased 33.7% year-over-year and increased 12.0% from the previous quarter. Gross margin for the quarter was 67.7%, operating margin was 60.3%, and net profit margin was 55.6%.
In the second quarter, shipments of 2-nanometer accounted for 3% of total wafer revenue; 3-nanometer accounted for 30%; 5-nanometer accounted for 33%; and 7-nanometer accounted for 11%. Advanced technologies, defined as 7-nanometer and more advanced technologies, accounted for 77% of total wafer revenue.
“Our business in the second quarter was supported by strong demand for our leading-edge process technologies,” said Wendell Huang, Senior VP and Chief Financial Officer of TSMC. “Moving into third quarter 2026, we expect our business to be supported by continued strong demand for our leading-edge process technologies, including the steep ramp-up of our 2-nanometer technology.”
Based on the company’s current business outlook, management expects third-quarter 2026 revenue to range from US$44.6 billion to US$45.8 billion. Assuming an exchange rate of NT$32 to US$1, the company expects a gross profit margin between 65% and 67% and an operating profit margin between 56% and 58%.
“To address the structural increase in the overall long-term semiconductor market demand profile, TSMC collaborates closely with our customers and our customers’ customers to plan our capacity” said C.C. Wei, Chairman and CEO, TSMC, “Given the fundamental complexity of leading-edge technologies and the design-in and lead time involved, we also have a very good idea of their multi-year product roadmap and production plans.”
“This is important because it takes more than five years to develop the technology and product, prepare the capacity, and ramp it up to high volume production” continued Wei, “Internally, TSMC employs a disciplined capacity planning system to assess the market demand, from both a top-down and bottom-up approach. This is a continuous and ongoing process. Based on our assessment, “we are stepping up our capex investments to increase our capacity to support our customers’ future growth.”
“Now, with the strong collaboration and support from our leading U.S. customers and the U.S. Federal, State, and City governments, we would like to announce an additional $100B investment in Arizona. This is to build several more semiconductor logic wafer fabs for 2nm and below technologies, as well as advanced packaging fabs, to support the strong multi-year demand from our leading U.S. customers. We believe this investment will help to further foster the development of the U.S. semiconductor ecosystem, strengthen the supply chain, and support an increasing number of high-tech, high-paying jobs in the United States.”
