TSMC posts record Q2 revenue as AI chip demand surges

Taiwan Semiconductor Manufacturing Co. (TSMC) reported record second‑quarter revenue of T$1.27 trillion (about US$39.6 billion), a 36 % year‑on‑year increase. June sales rose 68 % from a year earlier, driving the quarterly gain. The strong performance reflects continued, heavy demand for AI‑related chips from major customers such as Nvidia and Apple, with AI applications now accounting for roughly a quarter of TSMC’s revenue. Gross margin improved to about 66 %.

The company said it will expand capacity with two new advanced‑packaging plants in Chiayi, bringing the total to four facilities and supporting the AI chip surge. Capital spending is slated at a record level of roughly US$50‑56 billion for the year.

Investors responded positively, with TSMC shares gaining about 1 % after the release, while analysts note the results as a key gauge of the global AI‑infrastructure build‑out. In parallel, TSMC has begun mass production of its 2 nm process; Google plans to use this technology for its upcoming Pixel 11 flagship, and Google is also selling its custom TPU chips to independent "neocloud" providers, further highlighting TSMC’s central role in the AI hardware supply chain.