TSMC Q2 revenue tops estimates; shares rise

Taiwan Semiconductor Manufacturing Co. reported second-quarter revenue of NT$1.27 trillion ($39.63 billion) for April through June, a 36% increase from a year earlier and slightly above the NT$1.264 trillion analysts had forecast. The figure fell within the company’s prior guidance of $39 billion to $40.2 billion. Shares rose just over 1% on the update.

TSMC is the world’s largest contract chipmaker. The company manufactures advanced process nodes and packaging used in AI accelerators, high-performance computing and smartphones. Sales at those technologies are monitored as indicators of demand for next-generation semiconductors.

TSMC reported strong results in the first quarter and said rising AI adoption across consumer, enterprise and sovereign applications has increased computing requirements. Advanced-node capacity has tightened, and manufacturers have maintained pricing in the foundry market.

Full second-quarter results are scheduled for July 16. Investors and analysts will focus on gross margin, capital expenditure plans and management commentary about AI-related demand during the earnings call.

Taiwan authorities announced plans for TSMC to add two advanced packaging plants in Chiayi to expand capacity for chip-on-wafer-on-substrate (CoWoS) and related packaging technologies used in AI chips. The expansion is intended to increase production capacity but will keep capital spending elevated.

The semiconductor sector has seen renewed investor attention following a large U.S. listing by a major memory company and rising demand for memory used in AI workloads. Market participants continue to track quarterly results for signs of margin trends, capital intensity and demand driven by AI infrastructure.