TSMC profit jumps 77% to record $22bn, pledges $100bn more for Arizona plants

Record profit beat

Taiwan Semiconductor Manufacturing Co. posted a 77% jump in second-quarter net profit to T$706.6 billion ($22 billion), a record that easily surpassed the T$632.6 billion LSEG SmartEstimate, which is weighted toward the most consistently accurate analysts. The profit compared with $12.4 billion in the same three months of 2025. Revenue for the April-June period had already been disclosed at nearly 35 billion euros, up 36% year-on-year. It marked the fifth consecutive quarter of record earnings and the ninth straight double-digit percentage increase.

AI demand surge

The world's largest contract chipmaker, whose customers include Nvidia and Apple, said demand for its most advanced processors remains unrelenting. High-performance computing chips, the kind that power AI data centres, now account for about a quarter of TSMC's total revenue, a sharp rise from just 6% in the third quarter of 2023. Chairman and CEO C.C. Wei has previously stated the company is operating at full capacity, and on Thursday he said AI-driven demand would stay strong until at least 2030.

Arizona expansion

Wei also used the earnings call to pledge an additional $100 billion for US manufacturing in Arizona. The new commitment brings TSMC's total planned investment in the country to $265 billion. The company had previously committed $165 billion for six fabrication facilities in the state; the fresh funds will likely add four more plants, Wei said. The US Commerce Department said the expansion would create tens of thousands of American jobs, a development that supports President Donald Trump's push to bring advanced manufacturing back to the United States.

Capex and guidance raised

TSMC lifted its capital expenditure budget for 2026 to between $60 billion and $64 billion, up from an earlier range of $52 billion to $56 billion, citing higher machinery costs and the need to expand production lines. The company also raised its full-year revenue growth forecast to 40%, from a previous target of 30%. For the current quarter, it expects revenue of 38.9 billion to 40 billion euros, about 38% more than the same period last year.

Market valuation

TSMC's shares have climbed more than 55% this year, giving it a stock market valuation of around $2 trillion and making it Asia's most valuable listed company. The chipmaker's dominance in advanced semiconductor manufacturing has made it indispensable to the global AI infrastructure build-out, which has driven record capital spending by tech giants.