16 July 2026
If you are covering TSMC’s latest results, please see the following comment from Ben Barringer, head of technology research at Quilter Cheviot:
“TSMC has delivered another strong set of results, with revenue rising 34% year-on-year, supported by strong AI and datacentre demand. The company’s outlook for the third quarter remains robust, with revenue growth of around 37% expected and margins continuing to hold up well. While rising memory costs are likely to push up the price of PCs and smartphones and could weigh on some consumer demand, AI related spending appears far more resilient, with customers continuing to invest heavily in the infrastructure needed to support the technology.
“Perhaps the most significant announcement was a substantial increase in capital expenditure guidance, which has been raised from $52-56 billion to $60-64 billion. The company is also accelerating its international expansion, including a further $100 billion commitment to its Arizona operations, taking its total planned investment there to $265 billion. Alongside new facilities in Japan and Germany, this reflects its confidence in long-term demand.
“The company also upgraded its full-year outlook, increasing expected revenue growth from around 30% to more than 40%. AI remains the key driver, supporting demand not only for advanced chips but also for the sophisticated packaging technologies needed to deploy them at scale.
“While new entrants are seeking to build domestic semiconductor capacity, replicating TSMC's technology leadership, scale, manufacturing expertise and customer relationships will take time, so it remains well placed to benefit for a long while yet.”
