Taiwan Semiconductor Manufacturing Company (TSMC) reported a record quarterly net profit on Thursday, driven by insatiable demand for artificial intelligence chips, and announced a further $100bn (€87.4bn) investment to expand its manufacturing footprint in the United States.
The Hsinchu-based chipmaker posted net profit of NT$706.6bn (€19.1bn) for the April–June period, a 77% increase year-on-year, while revenue climbed 36% to NT$1.27tn (€36.8bn). Earnings per share came in at $4.31, above Wall Street expectations, as sales reached $40.2bn (€36.8bn), surpassing analysts' forecasts of $39.63bn (€34.6bn).
TSMC's results are closely watched as a barometer for the global semiconductor industry and the broader AI sector, especially as investors debate whether the AI rally is sustainable. The company manufactures chips for nearly every major designer, including Nvidia and Apple.
AI Demand 'Extremely Robust' Through 2030
CEO Che-Chia Wei told analysts during the earnings call that global AI-related demand is extremely robust and expected to remain very strong until around 2029 or 2030. Based on this outlook, TSMC raised its 2026 revenue growth forecast to slightly above 40% year-on-year, up from a previous estimate of more than 30%.
The quarterly figures confirmed earlier monthly data: June revenue jumped 67.9% year-on-year, and first-half sales rose 35.6% compared to the same period in 2025, slightly ahead of consensus estimates.
TSMC shares rose about 1% after the earnings release but later gave back those gains as a sell-off in AI-related stocks weighed on Asian benchmarks during Thursday's session.
$100bn Boost for US Manufacturing
Alongside the financial results, TSMC announced it would spend an additional $100bn (€87.4bn) to expand its manufacturing capacity in the US, on top of the $165bn (€144bn) already committed to building six fabrication plants in Arizona. The new funds will support four additional Arizona plants dedicated to producing the most advanced chips—those of 2 nanometres and below—and are intended to support the strong multi-year demand from leading American customers, Wei said.
The move brings TSMC's total US investment pledges to approximately $265bn (€231bn). The company also raised its capital expenditure budget for this year to between $60bn (€52.4bn) and $64bn (€55.9bn), up from an earlier range of $52bn (€45.4bn) to $56bn (€48.9bn).
The announcement follows a trade agreement between the Trump administration and Taiwan earlier this year, under which Taiwanese companies committed to invest at least $250bn (€218bn) in the US technology sector in exchange for lower tariffs.
For European readers, TSMC's expansion underscores the intensifying global competition for semiconductor manufacturing capacity. The EU has been pursuing its own Chips Act to boost domestic production and reduce reliance on Asian suppliers, but the scale of TSMC's US investment dwarfs European efforts. As AI demand reshapes supply chains, European policymakers in Brussels, Berlin, and Paris are watching closely to ensure the continent does not fall further behind in this critical industry.
