TSMC posts record Q2 profit and adds $100 billion to its Arizona buildout

Taiwan Semiconductor Manufacturing Co. reported record second-quarter 2026 net income of NT$706.56 billion, up 77.4% from a year earlier, the company said — its fifth consecutive record quarter.

Revenue reached NT$1,270.38 billion, about US$40.2 billion, up 36% from a year earlier. The results show how thoroughly the artificial-intelligence buildout now drives the world’s largest contract chipmaker.

Advanced process nodes of 7-nanometer and below accounted for 77% of wafer revenue. Gross margin came in at 67.7% and operating margin at 60.3%.

Chief Executive C.C. Wei announced an additional $100 billion investment in Arizona chip capacity, taking TSMC’s total committed Arizona spending to $265 billion.

TSMC also raised its 2026 capital-expenditure guidance to a range of $60 billion to $64 billion, up from a prior $52 billion to $56 billion, and lifted its full-year revenue-growth outlook to slightly above 40% in US-dollar terms. It cited AI demand for its 3-nanometer and 2-nanometer process nodes and CoWoS advanced packaging.

The guidance and margins are the company’s own figures, and the outlook rests on AI orders holding through year-end, demand that has swung sharply before. Whether Arizona capacity arrives on schedule, and whether order growth stays near 40%, will test how durable this run is.