TSMC Q2 Profit Jumps 77%, Pledges $100B More US
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- TSMC reported Q2 revenue of ~$39.45B (up 36% YoY) and net income of ~$21.9B (up 77.4% YoY), both above estimates, with chips 7nm or smaller accounting for 77% of wafer revenue.
- TSMC raised its 2026 capex projection from $52-56B to $60-64B and lifted its revenue growth guidance from 30%+ to 40%+ YoY in USD terms, explicitly citing the "AI megatrend."
- TSMC will spend an additional $100B on four new US chip fabs, bringing its total US investment pledge to $265B as part of a broader US-Taiwan deal, per a US official.
- Bloomberg framed the $100B expansion as a "key Trump deal," tying the buildout to US-Taiwan trade negotiations rather than purely commercial demand.
- TSMC told analysts AI demand can run through 2030, per The Loadstar, which noted the outlook lifts air cargo tied to chip shipments.
- Despite the earnings beat, TSMC's ADR fell over 3.5% in pre-market trading, per the Financial Express — a counterpoint to the uniformly celebratory coverage.
Why it matters: TSMC's decision to lift capex to $60-64B and commit an extra $100B to Arizona fabs — bringing the total US pledge to $265B — signals that management sees AI-driven chip demand extending years beyond current capacity, while locking advanced node production inside the US as a hedge in US-China semiconductor tensions.
