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TSMC Sets Profit Record and Raises 2026 Outlook on Soaring AI Chip Demand

Results across the chip supply chain point to demand outpacing available capacity.

Overview

  • TSMC, which reported Thursday, posted record net income of NT$572.48 billion and revenue of NT$1.134 trillion on surging orders for advanced AI chips.
  • The chipmaker guided second‑quarter sales to $39 billion to $40.2 billion and now expects full‑year revenue growth to top 30% in U.S. dollar terms.
  • Management said capital spending will land at the high end of its $52 billion to $56 billion plan and is expanding 3‑nanometer production in Taiwan, Arizona and Japan, including a new Tainan plant and a $165 billion U.S. buildout.
  • ASML raised its 2026 net sales outlook to €36 billion to €40 billion and said demand is exceeding supply, as China’s share of its system sales fell to 19% under export restrictions.
  • Advanced chips drove the mix, with 7‑nanometer and smaller at 74% of wafer revenue and sub‑3nm at 25%, while tight packaging capacity and risks to specialty gases from the Middle East have companies holding safety stocks.