TSMC July Revenue Surges 44.7% YoY
According to TSMC’s latest financial report released on August 10, the world’s leading semiconductor foundry recorded consolidated revenue of approximately NT$467.58 billion in July 2026, increasing 5.6% month over month and 44.7% year over year to reach a new monthly record high. For the first seven months of 2026, TSMC’s cumulative revenue totaled approximately NT$2.872 trillion, representing a 37% year-over-year increase and marking another historical high for the same period.
Based on TSMC’s previous financial outlook, the company expects third-quarter 2026 revenue to range between US$44.6 billion and US$45.8 billion, assuming an exchange rate of NT$32 per US dollar. This translates to approximately NT$1.427 trillion to NT$1.466 trillion. At the midpoint of the forecast, quarterly revenue would grow about 12% compared with the previous quarter, potentially setting another record high. TSMC also expects its third-quarter gross margin to remain strong at 65% to 67%, while operating margin is projected to reach 56% to 58%.
Market analysts noted that TSMC delivered an impressive performance in the second quarter, with gross margin reaching 67.7% and operating margin climbing to 60.3%. Compared with the same period in 2025, the company’s revenue increased 36%, while net profit surged 77.4%. The midpoint of TSMC’s third-quarter revenue guidance also indicates approximately 12% sequential growth, highlighting the company’s continued momentum. Overall, TSMC’s profit growth rate has significantly outpaced its revenue expansion, demonstrating strong operational efficiency and pricing power.
The company’s growth momentum has been largely driven by rising demand for artificial intelligence (AI) chips. Advanced process technologies of 7nm and below now account for approximately 77% of TSMC’s wafer revenue. Meanwhile, its 2nm process technology, with Apple as a key customer, has already contributed about 3% of quarterly wafer revenue. As demand for advanced semiconductor products continues to accelerate, TSMC is expected to significantly expand 2nm production capacity in the third quarter. These developments highlight not only TSMC’s technology leadership but also its ability to maintain profitability amid increasing semiconductor manufacturing complexity.
In comparison, Intel has continued to pursue its ambition of becoming a world-class semiconductor foundry by investing heavily in new manufacturing facilities, advanced process development, and foundry expansion. However, competing with TSMC requires more than simply advancing to the next process node.
Industry analysts pointed out that Intel’s biggest challenge is achieving sustainable profitability while manufacturing cutting-edge chips and securing high-value customer orders to fully utilize its production capacity. The company must also scale advanced manufacturing without sacrificing margins. TSMC’s strong second-quarter results demonstrate how difficult it is to achieve this balance. The company has successfully transformed technological advantages in advanced manufacturing into outstanding financial performance.
As competition in the global foundry market intensifies, Intel’s progress will inevitably be compared with TSMC’s technology roadmap. However, investors may increasingly focus not only on process technology advancements but also on key financial metrics such as profitability, efficiency, and long-term business sustainability.
