Taiwan's TSMC and UMC post upbeat earnings forecasts amid AI chip surge

Taiwan Semiconductor Manufacturing Co (TSMC) is set to release its June earnings on July 16, with analysts expecting results that will beat Wall Street forecasts. Despite its ADR lagging the Philadelphia Semiconductor Index, the company’s dominant market share (73%) and pricing power have led to price increases of 5‑10% for its 7nm and more advanced nodes, driven by strong AI chip demand. TSMC projects AI accelerator revenue to grow at a compound annual rate of over 50% through 2029 and anticipates the global semiconductor market to reach $1.5 trillion by 2030. Consensus EPS for the second quarter is $3.83, implying a 55% year‑over‑year profit rise.

Separately, FactSet’s latest survey of 21 analysts raised United Microelectronics Corp (UMC)’s 2026 EPS estimate to NT$4.66, up from NT$4.63, and set a median target price of NT$88. Revenue forecasts for 2026‑2028 range between NT$251.9 billion and NT$303.4 billion, reflecting continued growth in the fab sector.