TSM · Taiwan Semiconductor Manufacturing Company Limited

TSMC's second quarter 2026 results reflect strong execution amid robust demand for its leading-edge technologies. Revenue rose 36% year-over-year to NT$1,270.38 billion, supported by broad-based strength across 3nm, 5nm, and the initial ramp of 2nm. Gross margin expanded 9.1 percentage points to 67.7%, benefiting from favorable product mix and cost improvements, while operating margin reached 60.3%. Net income grew 77.4% to NT$706.56 billion, with diluted EPS of NT$27.25, driven by operating leverage and higher non-operating income. Management highlighted that 2-nanometer technology accounted for 3% of wafer revenue and is expected to ramp steeply in the second half. For the third quarter, TSMC guides revenue between US$44.6 billion and US$45.8 billion, above the second quarter's US$40.20 billion, with gross margin of 65-67% and operating margin of 56-58%. The guidance assumes an exchange rate of 1 USD to 32 NTD. Capital expenditures totaled NT$496 billion in Q2, and free cash flow was NT$287.36 billion. The company also announced a NT$7.00 per share cash dividend for the first quarter, payable in October. Overall, TSMC's strong earnings and optimistic guidance underscore its competitive position in advanced semiconductor manufacturing.