TSMC’s July revenue jumps 44.7% year over year to $14.5 billion

TSMC (NYSE: TSM) pulled in NT$467.58 billion, or about $14.5 billion, in July, putting sales 44.7% above the same month in 2025. The Taiwanese chipmaker released the figure Monday as AI hardware orders kept feeding its factories.

TSMC manufactures semiconductors for firms like Nvidia (NASDAQ: NVDA) and Google (NASDAQ: GOOGL), belonging to Alphabet. This customer base gives TSMC’s monthly figures some of the most definitive means of measuring actual demand from the entire tech industry for semiconductors.

The company gives investors its monthly sales total without adding a written explanation for what caused the change. Its latest quarterly results fill in much of that picture. During the second quarter, high-performance computing supplied 66% of total sales, and TSMC placed its AI-related chip business inside that division.

TSMC’s Chairman CC Wei said, “AI-related demand continues to be extremely robust.” TSMC now expects 2026 revenue in U.S. dollars to grow a little more than 40%. It also lifted this year’s investment budget to $60 billion to $64 billion, giving the company more money for plants, machinery, and newer production technology.

TSMC pushes 2-nanometer production higher as advanced chips dominate wafer sales

Second-quarter sales were dominated by TSMC’s smaller wafer process. The 5-nanometer accounted for 33%, which is the highest percentage of all the wafer processes mentioned. 3 nanometer contributed 30%, and 7-nanometer contributed 11%. On the other hand, 2-nanometer had a contribution of 3%.

When TSMC groups everything made at 7 nanometers or smaller, those technologies represented 77% of total wafer revenue.

Wendell Huang, Senior VP and Chief Financial Officer of TSMC, tied the quarter’s performance to customer demand for the company’s newest manufacturing processes.

“Moving into third quarter 2026, we expect our business to be supported by continued strong demand for our leading-edge process technologies, including the steep ramp-up of our 2-nanometer technology,” Wendell said.

Management is guiding for third-quarter 2026 revenue of $44.6 billion to $45.8 billion. The forecast uses an assumed currency rate of NT$32 for $1.

TSMC also expects a gross margin of 65% to 67% for the quarter. Its projected operating margin is 56% to 58%.