Taiwan Semiconductor Manufacturing Co. (TSMC) reported another month of strong revenue growth on Monday, with June sales surging nearly 68% from a year earlier as demand for artificial intelligence chips remained robust ahead of the company's second-quarter earnings release later this week.
The world's largest contract chipmaker said June revenue rose 67.9% year over year to NT$442.68 billion (about $13.8 billion), while increasing 6.2% from May. For the first six months of 2026, revenue climbed 35.6% from the same period a year earlier to NT$2.404 trillion ($74.99 billion). TSMC shares rose about 1% in Taiwan trading following the update.
The figures capped a record second quarter for the company. Based on its monthly revenue disclosures, TSMC generated NT$1.27 trillion in second-quarter revenue, equivalent to about $39.6 billion, up roughly 36% from a year earlier and slightly above analyst expectations compiled by LSEG, Reuters reported. The quarterly revenue also exceeded the high end of the company's earlier guidance of $39 billion to $40.2 billion. Reuters also reported that analysts expect TSMC's second-quarter net profit to rise nearly 59% from a year earlier when the company reports earnings on July 16.
Industry analysts said the latest figures reflected continued strength in AI-related semiconductor demand.
Sravan Kundojjala, an analyst at SemiAnalysis, told CNBC that TSMC's June performance was particularly notable because the company historically recorded month-over-month revenue declines during June over the past four years. He said demand for AI chips remains constrained by limited supply, with TSMC's advanced 3-nanometer manufacturing capacity fully booked by leading AI graphics processors and server CPU customers this year.
TSMC manufactures chips for many of the world's largest technology companies, including Nvidia, Apple and Advanced Micro Devices. The company also continued to dominate the global contract chipmaking industry, holding a 73% share of the global pure-play foundry market in the first quarter of 2026, according to Counterpoint Research. The market position underscores TSMC's central role in supplying advanced chips for AI, smartphones, high-performance computing systems and cloud data centers.
Kundojjala estimated AI chips could generate more than $40 billion in revenue for TSMC during 2026, representing roughly one-quarter of the company's total annual revenue, CNBC reported.
The company is also expanding production capacity to support growing AI demand. Reuters reported that Taiwan's National Science and Technology Council Minister Wu Cheng-wen said TSMC will build two additional advanced chip-packaging plants at Chiayi Science Park in southern Taiwan. The first facility has already entered mass production, while the second is expected to begin operations shortly.
Advanced chip packaging has become an increasingly important part of AI semiconductor production because it enables processors and high-bandwidth memory to be integrated more efficiently for AI servers and high-performance computing applications. The expansion comes as chipmakers race to increase manufacturing capacity to meet sustained demand for AI hardware.
TSMC has been one of the biggest beneficiaries of the global AI investment boom as technology companies continue to spend heavily on infrastructure for generative AI services. The company manufactures advanced processors designed by many of the industry's largest chip developers, placing it at the center of the expanding AI supply chain, CNBC noted.
Investors will receive a clearer picture of the company's financial performance when TSMC releases its full second-quarter earnings on Thursday, including updated profit figures and management's outlook for the remainder of the year.
