Taiwan Semiconductor Manufacturing Co. reported second-quarter results on July 16 that reset its own records for a fifth consecutive quarter — and paired them with the largest single expansion of its American footprint yet.
The numbers
Net income came in at NT$706.56 billion, roughly $22.0 billion, up 77.4% year over year in New Taiwan dollar terms. Revenue reached $40.2 billion, up 33.7% in US-dollar terms and 12% sequentially. Margins stayed at levels most manufacturers never see: 67.7% gross, 60.3% operating, 55.6% net.
Another $100 billion for Arizona
The headline came on the call rather than in the release. CEO C.C. Wei announced an additional $100 billion US investment: four additional wafer fabs capable of 2-nanometer-class mass production plus one advanced packaging facility, all in Arizona. The commitment lifts TSMC's total US investment to $265 billion — a figure that stood at $65 billion as recently as early 2025.
Where the demand lives
The 2nm node, which entered volume production late last year, already accounts for 3% of wafer revenue; 3nm contributes 30% and 5nm 33%, putting advanced nodes at 77% of the total. CFO Wendell Huang credited "the steep ramp-up of our 2-nanometer technology" and said AI demand remains structurally strong. Capital spending guidance for 2026 rose to $60–64 billion from $52–56 billion.
The guide
For Q3, TSMC forecast revenue of $44.6–45.8 billion with gross margin of 65–67% — implying the AI capex cycle that runs through Nvidia, AMD, Apple and every hyperscaler's custom silicon program has yet to crest. Shares of the company, which crossed a $2 trillion market value earlier this year, have become the market's cleanest proxy for whether the AI buildout is real spending or hope.