Taiwan Semiconductor (TSM)
Taiwan Semiconductor (TSM) is the world’s largest chip foundry and the manufacturer that turns Google’s TPU designs into silicon. It builds leading-edge chips for Apple, Nvidia, and Google. In Q1 2026 it reported revenue of NT$1,134.10 billion, about US$35.90 billion, up 40.6% in US dollar terms.
| Ticker | TSM |
|---|---|
| Exchange | NYSE |
| Sector | Information Technology · Semiconductor Foundry |
| Country | Taiwan |
| Wikidata | Q713418 |
| Last updated | 2026-06-04 |
Next event:Next earnings · Q2 2026, estimated · Calendar-estimated from prior years; TSMC has not confirmed the date. Last report: Q1 2026 on 2026-04-16. (source)
Latest reported quarter:Q1 2026 (ended Mar 31, 2026) (reported2026-04-16)
TSMC reported Q1 2026 consolidated revenue of NT$1,134.10 billion (US$35.90 billion), up 35.1% in NT$ and 40.6% in US$ year over year, with net income of NT$572.48 billion (+58.3%) and a 66.2% gross margin, on strong demand for its leading-edge nodes.
| Revenue (NT$) | NT$1,134.10B+35.1%YoY · US$35.90B, +40.6% YoY |
|---|---|
| Net income (NT$) | NT$572.48B+58.3%YoY |
| Diluted EPS | NT$22.08+58.3%YoY · US$3.49 per ADR unit |
| Gross margin | 66.2% |
| Operating margin | 58.1% |
Revenue by segment
| 5-nanometer | 36% of wafer revenue |
|---|---|
| 3-nanometer | 25% of wafer revenue |
| 7-nanometer | 13% of wafer revenue |
| Advanced technologies (7nm and below) | 74% of wafer revenue |
Guidance:Q2 2026
| Revenue | US$39.0B–US$40.2B |
|---|---|
| Gross margin | 65.5%–67.5% · At an assumed NT$31.7 per US$ |
| Operating margin | 56.5%–58.5% |
Q2 2026 guidance from the Apr 16, 2026 earnings release; management cited continued strong demand for leading-edge nodes.
Recent & upcoming events
- · Q1 2026 results.Revenue NT$1,134.10B (US$35.90B), up 35.1% in NT$ and 40.6% in US$; net income NT$572.48B (+58.3%); 3nm at 25% and advanced nodes (7nm and below) at 74% of wafer revenue. (source)
- · CoWoS capacity stretched by Google TPU orders.Reports said MediaTek, designing Google's v7e and v8e TPUs, requested a roughly sevenfold increase in CoWoS advanced-packaging capacity from TSMC, underscoring AI-accelerator demand on TSMC's packaging lines. (source)
Q1 2026 figures are unaudited and prepared under TIFRS; node mix is share of wafer revenue per the Apr 16, 2026 release. US$ figures are TSMC's own translations. EPS is NT$22.08 (US$3.49 per ADR).
Figures are as of 2026-06-04 and reflect the most recent public filings/IR releases; they are updated after each earnings report.
What does TSMC do?
TSMC is a pure-play foundry. It does not sell chips under its own brand. Instead it manufactures chips that other companies design, which is why its customer list reads like a directory of the technology industry: Apple, Nvidia, AMD, and Google all have their most advanced silicon made here. The company pioneered this foundry model in 1987 and has led it ever since. In Q1 2026, 3-nanometer technology accounted for 25% of wafer revenue, 5-nanometer for 36%, and advanced nodes (7-nanometer and below) for 74% of the total (TSMC, Apr 16, 2026).
TSMC is a foreign private issuer, so its results are reported under Taiwan IFRS rather than US GAAP, in New Taiwan dollars with US dollar translations the company supplies itself. The figures below come from TSMC’s own quarterly earnings release filed with the SEC on Form 6-K.
Why is TSMC part of the Google value chain?
The Google value chain concept traces AI compute from Alphabet’s designs down to the physical plant that makes them real. TSMC is the layer where a design becomes a chip. Google’s Ironwood TPU is fabricated on TSMC’s 3-nanometer class process with CoWoS advanced packaging (The Next Web), and the eighth-generation TPUs Alphabet detailed in 2026 stay on TSMC’s leading-edge nodes. When Alphabet raises its capex budget, a large share of that money lands as TSMC wafer and packaging orders.
The packaging bottleneck shows how tightly the chain is coupled. CoWoS, the technology that stitches the logic die to high-bandwidth memory, has been the binding constraint on AI accelerator supply. In late 2025, reports said MediaTek, which co-designs Google’s TPUs, asked TSMC for roughly a sevenfold increase in CoWoS capacity to fill Google’s orders (TrendForce). How fast Google can scale its own silicon depends in part on how fast TSMC can add that capacity.
“Our business in the first quarter was supported by strong demand for our leading-edge process technologies. Moving into second quarter 2026, we expect our business to be supported by continued strong demand for our leading-edge process technologies.”
— Wendell Huang, Senior VP and CFO of TSMC, Q1 2026 results
What did TSMC report most recently?
In Q1 2026 (the quarter ended March 31, 2026), TSMC posted consolidated revenue of NT$1,134.10 billion, which it translates to US$35.90 billion (TSMC, Apr 16, 2026). Revenue grew 35.1% year over year in NT$ and 40.6% in US$, with the gap reflecting currency. Net income reached NT$572.48 billion, up 58.3%, with diluted EPS of NT$22.08 (US$3.49 per ADR unit), also up 58.3%. Margins were rich: gross margin of 66.2%, operating margin of 58.1%, and net margin of 50.5%. The company notes these figures are unaudited and not yet approved by its Board.
What is TSMC’s guidance?
For Q2 2026, TSMC guided to revenue of US$39.0 billion to US$40.2 billion, a gross margin of 65.5% to 67.5%, and an operating margin of 56.5% to 58.5%, based on an assumed exchange rate of NT$31.7 per US dollar (TSMC, Apr 16, 2026). Management framed the outlook around continued strong demand for its leading-edge process technologies, the same nodes the AI value chain depends on.
What are the risks for TSMC?
- Geographic concentration. Most of TSMC’s leading-edge capacity sits in Taiwan, which carries geopolitical risk. The company is building fabs in Arizona, Japan, and Germany, but the most advanced nodes remain concentrated at home.
- Packaging constraints. CoWoS advanced-packaging capacity has been the bottleneck on AI accelerator supply. If TSMC cannot expand it fast enough, customer roadmaps, including Google’s, can slip.
- Cyclicality. Foundry demand is cyclical. The current AI cycle is strong, but a downturn in PC, smartphone, or AI capex would pressure utilization and margins.
- Customer concentration in AI. A handful of large AI customers drive much of the leading-edge demand. A pause in hyperscaler capex would be felt quickly.
- Export controls. Restrictions on advanced-chip exports add policy uncertainty to where TSMC can ship its most advanced products.
Related securities, concepts & terms
- Google (Alphabet) AI Value Chainparent
- Alphabet (GOOGL)sibling
- ASML Holding (ASML)sibling
Related indices & ETFs
Frequently asked questions about TSMC
What does TSMC do?
Taiwan Semiconductor Manufacturing Company is the world's largest dedicated semiconductor foundry. It does not design chips of its own; it manufactures chips designed by customers such as Apple, Nvidia, and Google on the industry's most advanced process nodes. In Q1 2026, 3-nanometer technology was 25% of wafer revenue and advanced nodes (7nm and below) were 74%.
Why is TSMC part of the Google value chain theme?
TSMC is the foundry that turns Google's chip designs into physical silicon. Google's Ironwood and eighth-generation TPUs are fabricated on TSMC's 3-nanometer class nodes with CoWoS advanced packaging, so Alphabet's AI capex flows directly into TSMC orders. Without TSMC's leading-edge capacity, Google could not build its custom accelerators at scale.
What was TSMC's latest quarterly revenue?
TSMC reported Q1 2026 consolidated revenue of NT$1,134.10 billion, or US$35.90 billion, up 35.1% year over year in NT$ and 40.6% in US$. Net income was NT$572.48 billion, up 58.3%, with diluted EPS of NT$22.08 (US$3.49 per ADR unit) and a gross margin of 66.2%.
What is TSMC's guidance for the next quarter?
For Q2 2026, TSMC guided to revenue of US$39.0 billion to US$40.2 billion, a gross margin of 65.5% to 67.5%, and an operating margin of 56.5% to 58.5%, at an assumed exchange rate of NT$31.7 per US dollar. CFO Wendell Huang cited continued strong demand for its leading-edge process technologies.
When does TSMC report its next earnings?
TSMC is expected to report Q2 2026 results around July 16, 2026. That date is calendar-estimated and not yet confirmed by the company, so check TSMC's investor relations page. It last reported Q1 2026 on April 16, 2026.
Sources & references
- TSMC Reports First Quarter EPS of NT$22.08 (Form 6-K, Exhibit 99.1) · Taiwan Semiconductor Manufacturing Company / SEC EDGAR, 2026-04-16
- TSMC 1Q26 Earnings Release (Investor Relations) · Taiwan Semiconductor Manufacturing Company, 2026-04-16
- MediaTek reportedly secures Google v7e, v8e TPU orders, requests 7-fold CoWoS increase from TSMC · TrendForce, 2025-12-15
- Google launches Ironwood TPU and previews eighth-gen training and inference chips at TSMC nodes · The Next Web, 2025-04-09
- TSMC Financial Calendar (Investor Relations) · Taiwan Semiconductor Manufacturing Company, 2026-06-04