TSMC just told investors its June sales jumped by more than two-thirds. AI chip demand continues to outstrip supply, keeping TSMC's N3 fabrication process fully booked as it remains the go‑to node for this year's most advanced AI processors.
On a month‑to‑month basis, June sales were 6.2% higher than May 2026.
The company's results for the first half of 2026 also showed strong momentum.
Sravan Kundojjala, an analyst at research firm SemiAnalysis, described TSMC's numbers as "quite robust." He pointed out that TSMC's Q2 revenue beat the top end of its projected range of $40.2 billion. He also noted that June revenue has typically fallen month‑on‑month over the past four years, making this increase especially notable.
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Counterpoint Research data shows TSMC held a 73% slice of the worldwide pure‑foundry market during Q1 2026. A pure‑foundry is a company that only manufactures chips for other companies.
Its biggest clients include Nvidia, Apple, and Advanced Micro Devices - all of which rely on TSMC to produce the cutting‑edge chips that power AI systems, smartphones, and data centers.
Kundojjala estimated: "We estimate TSMC is on track to over $40 billion in AI chip revenue in 2026, or close to 25% of its total revenue."
The sustained surge in AI chip orders has pushed TSMC's advanced nodes like N3 to near‑capacity utilization, with lead times stretching as customers compete for wafer allocation. This tight supply environment has strengthened TSMC's pricing power and pushed its capital expenditure plans higher, as the company races to add both wafer fabrication and advanced packaging capacity.
According to Reuters, Wu Cheng‑wen, who heads Taiwan's National Science and Technology Council, said TSMC plans to build two new advanced chip packaging plants at the Chiayi Science Park, a site in southern Taiwan. Wu stated, "the first facility is already in mass production," and added that the second will begin operations shortly.
TSMC's dominance in advanced semiconductor manufacturing has made it a linchpin of the global tech industry. Its N3 process is the most advanced node in volume production, used by Nvidia for its H200 and B100 AI accelerators, by Apple for its latest A18 and M4 series chips, and by AMD for its MI300 line. The company's expansion of packaging capacity in Chiayi reflects the growing need for advanced packaging technologies like CoWoS that are essential for high‑performance AI chips.
With TSMC's advanced nodes operating at near-full capacity and its foundry market share exceeding 70%, the company's ability to meet rising AI demand is a key factor for the entire semiconductor supply chain. Investors are watching capacity additions closely as pricing power and lead times remain elevated.
TSMC will announce its Q2 financial results on Thursday, July 16, 2026.
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