TSMC Shares Soar on 67.9% Year-Over-Year Revenue Surge

TSMC’s Strong June Sales Boost Stock Performance

TSMC (TWSE: 2330, NYSE: TSM) saw a significant rise in its stock price on Monday following the release of stronger-than-expected June sales figures. The company reported revenue for the month at NT$442.68 billion, marking a 6.2% increase from May and a remarkable 67.9% year-over-year growth compared to June 2025. This substantial year-on-year increase was a key driver behind the stock’s upward movement.

Investors are now eagerly awaiting TSMC’s full second-quarter report, which is scheduled for Thursday, July 16. The six-month revenue total for the first half of the year reached NT$2.4 trillion ($74.99 billion), representing a 35.6% increase compared to the same period in 2025.

TSMC serves a wide range of clients, including major technology companies such as Nvidia (NASDAQ: NVDA), Apple (NASDAQ: AAPL), and Advanced Micro Devices (NASDAQ: AMD). These firms rely on TSMC to produce advanced chips for their processors, which are used in smartphones, computers, data centers, and supercomputers that power large-scale AI applications.

Sustained Demand Drives Growth in AI Chip Production

Counterpoint Research reported that TSMC maintained a 73% market share in the pure-foundry segment during the first quarter. The overall market grew by 30% compared to the same quarter in the previous year, with demand primarily driven by AI graphics processors, custom CPUs, and advanced packaging solutions.

Several manufacturing lines contributed to this growth. The yield from TSMC’s N3 technology process improved, while plants using N4 and N5 manufacturing remained busy due to increased demand from AI GPU customers. Additionally, older nodes experienced limited spare capacity as the company reorganized its production plans. The CoWoS packaging process also saw an uptick in activity.

Samsung Electronics (KRX: 005930) ranked second in the market, although its share declined compared to the previous quarter. Despite this, Samsung is working to improve yield rates on its new SF2 and SF2P manufacturing lines. Semiconductor Manufacturing International Corp. (HKEX: 0981, SSE: 688981) finished third in terms of revenue, achieving another quarterly record with a 93.7% plant utilization rate in the first quarter.

Continued Growth Expected Through 2026

Counterpoint Research predicts that demand for advanced-node production and wafer shipments at major foundries will continue to grow throughout 2026. Some orders are also shifting as TSMC optimizes its use of available capacity.

The semiconductor industry started 2026 with strong sales performance. Pure-play foundry revenue increased by 20% compared to the fourth quarter of 2025, leading to a full-year growth of 26%. This growth was primarily fueled by demand for GPUs, ASICs, and accelerators based on 4nm and 5nm technologies.

In Q4 2025, TSMC held a 72% market share, with increased production of its N3 nodes due to higher orders for smartphones and PC chips. Samsung maintained a 7% market share as it focused on improving yields on its SF2 process and securing more SF4 orders for HBM4 logic dies.

Expansion of Packaging Facilities in Chiayi

In a separate development, the Taiwanese government announced that TSMC will construct a third and fourth advanced-packaging factory at the Chiayi Science Park in southern Taiwan. This site is becoming one of the company’s primary packaging bases.

The first factory at the park is already operating at scale, while the second is nearing full production. At the groundbreaking ceremony, National Science and Technology Council Minister Wu Cheng-wen stated, “Today’s groundbreaking marks the start of the second phase, which will include a third and fourth plant.”

Once all four factories are operational, the park is expected to manufacture goods valued at over NT$300 billion or approximately $9.35 billion annually. The project is anticipated to create over 9,000 new jobs.

One key area of development will be the chip-on-wafer-on-substrate (CoWoS) process, which allows processors and memory to be placed very close together within a single package. Demand for this technology continues to outpace supply, with Nvidia among the customers requesting additional capacity as AI chip shipments increase.

Counterpoint Research noted, “In 2026, we believe not only advanced nodes but also parts of the 8-inch segment will see improved utilization. Combined with a broad-based increase in wafer pricing, this is likely to further support foundry revenue growth in 2026.”