Taiwan Semiconductor’s AI Surge: June Revenue Soars 68%

Taiwan Semiconductor Manufacturing Co. Ltd. Reports Strong June Revenue

Taiwan Semiconductor Manufacturing Co. Ltd. (TSMC) announced a significant rise in its June revenue on Monday, highlighting sustained demand for advanced chips used in artificial intelligence (AI) applications. The company, the world’s largest contract chipmaker, reported that its consolidated revenue for June increased by 6.2% from May to 442.68 billion New Taiwan dollars (approximately $15.1 billion). This marks a substantial jump of 67.9% compared to the same month in the previous year.

For the first half of 2026, TSMC generated consolidated revenue of 2.40 trillion New Taiwan dollars, representing a 35.6% increase over the corresponding period in 2025. These results reflect the continued growth trajectory of the company as major technology firms ramp up their investments in AI infrastructure.

TSMC produces advanced chips for several high-profile clients, including NVIDIA Corp., Apple Inc., and Advanced Micro Devices Inc. The latest revenue figures are particularly significant as they come ahead of the company’s second-quarter earnings report, which is expected to provide insights into AI-related demand, capital spending plans, and the company’s outlook for the rest of the year.

Analysts Highlight Strong AI Demand

The recent performance of TSMC has been praised by industry analysts. Sravan Kundojjala, an analyst at SemiAnalysis, described the results as “quite robust” during comments to CNBC. He noted that TSMC’s second-quarter revenue surpassed the upper end of its own guidance of $40.2 billion. Kundojjala also pointed out that this performance is notable given that June revenue typically declines month-over-month over the past four years.

According to Kundojjala, AI-related supply remains constrained, with TSMC “sold out on N3,” its advanced manufacturing process used for many leading AI GPUs and CPUs. He estimates that the foundry is on track to generate more than $40 billion in AI chip revenue in 2026, which would account for nearly one-quarter of total revenue.

Investor Focus on Earnings Report

Investors are now closely watching TSMC’s second-quarter earnings report, scheduled for July 16. Wall Street analysts anticipate earnings of $3.77 per share on revenue of $39.76 billion, compared to earnings of $2.47 per share and revenue of $30.07 billion a year earlier.

Despite the company’s premium valuation of about 37.7 times earnings, analysts remain broadly optimistic. Recent price forecasts from major financial institutions include Bank of America raising its target to $590, Susquehanna increasing its forecast to $575, and Barclays lifting its estimate to $470.

Expansion of Chip Packaging Capacity

In addition to its strong financial performance, TSMC is expanding its chip packaging capabilities. According to Reuters, Taiwan’s science and technology minister announced that TSMC will build two additional advanced chip packaging plants at the Chiayi Science Park in southern Taiwan.

The first packaging plant at the site is already in mass production, while the second is expected to begin operations soon. The new third and fourth plants are anticipated to contribute more than 300 billion New Taiwan dollars (about $9.35 billion) in annual output and create over 9,000 jobs.

This expansion is part of TSMC’s efforts to increase CoWoS advanced packaging capacity, which is crucial for meeting the growing AI-driven demand from customers such as NVIDIA.