TSMC Posts Record $39.6B Quarterly Revenue As AI Chip Demand Surges

Taiwan Semiconductor Manufacturing Co. (TSMC) reported record second-quarter revenue of $39.6 billion (T$1.3 trillion) on Monday, up 36% year-on-year, as robust demand for artificial intelligence (AI) chips continued to drive growth.Revenue surgeAhead of its full earnings release on July 16, the world's largest contract chipmaker reported June revenue of $13.8 billion (T$442.7 billion), a 67.9% year-on-year increase that pushed second-quarter sales to a record $39.6 billion (T$1.3 trillion), a company statement showed on Monday.The results landed near the upper end of TSMC's guidance of $39 billion to $40.2 billion for the quarter, edging past analysts' expectations.Investors are now looking to TSMC's earnings report later this week for updated guidance on demand, capital expenditure, and production capacity, amid expectations that second-quarter net profit will rise nearly 59% from a year earlier, according to a Reuters report citing LSEG SmartEstimate. TSMC's primary shares listed on the Taiwan Stock Exchange rose 1.04% to T$2,440 ($76.1) as of 1:15 p.m. AST Arabia on Monday.Packaging plantsOn Sunday, Taiwanese officials confirmed that TSMC has begun construction on two additional advanced packaging plants in southern Taiwan, bringing the total number of planned facilities at Chiayi Science Park to four. "Today's groundbreaking marks the start of the second phase, which will include a third and fourth plant," National Science and Technology Council Minister Wu Cheng-wen said.He added that, once fully operational, the four plants are expected to generate more than $9.35 billion (T$300 billion) in annual production value and create over 9,000 jobs.Key backgroundThe chipmaker, whose customers include leading AI companies such as Nvidia and Apple, has emerged as one of the biggest beneficiaries of the global AI investment boom. TSMC manufactures many of the world's most advanced semiconductors, making it a key supplier to technology companies expanding their AI infrastructure. As demand for AI chips has accelerated, the company has been working to increase production capacity, while advanced chip packaging remains a constraint across the industry.Net worth Morris Chang, founder of TSMC, has a real time net worth of $9.9 billion, as of July 13, 2026, according to Forbes' estimates.