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 Q2 2026 it reported revenue of NT$1,270.38 billion, about US$40.20 billion, up 33.7% in US dollar terms.
| Ticker | TSM |
|---|---|
| Exchange | NYSE |
| Sector | Information Technology · Semiconductor Foundry |
| Country | Taiwan |
| Held by ETF | KODEX US AI Semiconductor TOP3 Plus ETF (0151S0) |
| Wikidata | Q713418 |
| Last updated | 2026-07-20 |
Next event: Next earnings · Q3 2026 , estimated · Calendar-estimated from prior years (TSMC reported Q3 in mid-October in 2024 and 2025); TSMC has not confirmed the date. Last report: Q2 2026 on 2026-07-16. (source)
Latest reported quarter: Q2 2026 (ended Jun 30, 2026) (reported 2026-07-16)
TSMC reported Q2 2026 consolidated revenue of NT$1,270.38 billion (US$40.20 billion), up 36.0% in NT$ and 33.7% in US$ year over year, with net income of NT$706.56 billion (+77.4%) and a 67.7% gross margin, on strong demand for its leading-edge nodes.
| Revenue (NT$) | NT$1,270.38B +36.0% YoY · US$40.20B, +33.7% YoY |
|---|---|
| Net income (NT$) | NT$706.56B +77.4% YoY |
| Diluted EPS | NT$27.25 +77.4% YoY · US$4.31 per ADR unit |
| Gross margin | 67.7% |
| Operating margin | 60.3% |
Revenue by segment
| 5-nanometer | 33% of wafer revenue |
|---|---|
| 3-nanometer | 30% of wafer revenue |
| 7-nanometer | 11% of wafer revenue |
| 2-nanometer | 3% of wafer revenue |
| Advanced technologies (7nm and below) | 77% of wafer revenue |
Guidance: Q3 2026
| Revenue | US$44.6B–US$45.8B |
|---|---|
| Gross margin | 65%–67% · At an assumed NT$32.0 per US$ |
| Operating margin | 56%–58% |
Q3 2026 guidance from the Jul 16, 2026 earnings release; management cited continued strong demand for leading-edge nodes, including the steep ramp-up of 2-nanometer technology.
Recent & upcoming events
- · Q2 2026 results. Revenue NT$1,270.38B (US$40.20B), up 36.0% in NT$ and 33.7% in US$; net income NT$706.56B (+77.4%); 3nm at 30%, 5nm at 33%, 2nm at 3%, and advanced nodes (7nm and below) at 77% of wafer revenue. (source)
- · Q1 2026 results. Revenue NT$1,134.10B (US$35.90B), up 35.1% in NT$ and 40.6% in US$; net income NT$572.48B (+58.3%); 3nm at 25% and advanced nodes (7nm and below) at 74% of wafer revenue. (source)
- · CoWoS capacity stretched by Google TPU orders. Reports said MediaTek, designing Google's v7e and v8e TPUs, requested a roughly sevenfold increase in CoWoS advanced-packaging capacity from TSMC, underscoring AI-accelerator demand on TSMC's packaging lines. (source)
Q2 2026 figures are unaudited, prepared under TIFRS, and not yet approved by the Board; node mix is share of total wafer revenue per the Jul 16, 2026 release. US$ figures are TSMC's own translations. EPS is NT$27.25 (US$4.31 per ADR).
Figures are as of 2026-07-20 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 Q2 2026, 5-nanometer technology accounted for 33% of wafer revenue, 3-nanometer for 30%, 7-nanometer for 11%, and the newly ramping 2-nanometer for 3%, with advanced nodes (7-nanometer and below) making up 77% of the total (TSMC, Jul 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 second quarter was supported by strong demand for our leading-edge process technologies. Moving into third quarter 2026, we expect our business to be supported by continued strong demand for our leading-edge process technologies, including the steep ramp-up of our 2-nanometer technology.”
— Wendell Huang, Senior VP and CFO of TSMC, Q2 2026 results
What did TSMC report most recently?
In Q2 2026 (the quarter ended June 30, 2026), TSMC posted consolidated revenue of NT$1,270.38 billion, which it translates to US$40.20 billion (TSMC, Jul 16, 2026). Revenue grew 36.0% year over year in NT$ and 33.7% in US$, with the gap reflecting currency. Net income reached NT$706.56 billion, up 77.4%, with diluted EPS of NT$27.25 (US$4.31 per ADR unit), also up 77.4%. Margins were rich: gross margin of 67.7%, operating margin of 60.3%, and net margin of 55.6%. The company notes these figures are unaudited and not yet approved by its Board.
What is TSMC’s guidance?
For Q3 2026, TSMC guided to revenue of US$44.6 billion to US$45.8 billion, a gross margin of 65% to 67%, and an operating margin of 56% to 58%, based on an assumed exchange rate of NT$32.0 per US dollar (TSMC, Jul 16, 2026). Management framed the outlook around continued strong demand for its leading-edge process technologies, including the steep ramp-up of its 2-nanometer node, 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
Through its NYSE-listed ADR, TSMC is also the foundry of the US AI semiconductor concept, the layer where every GPU and custom accelerator in the basket is physically made.
- US AI Semiconductor parent
- Google (Alphabet) AI Value Chain parent
- Alphabet (GOOGL) sibling
- ASML Holding (ASML) sibling
Related indices & ETFs
- KODEX US AI Semiconductor TOP3 Plus ETF (0151S0) · Samsung Asset Management Korea-listed ETF (January 13, 2026) tracking the Akros US AI semiconductor index; TSMC's ADR is one of its three core holdings.
- Akros U.S. AI Semiconductor Top 3 Plus Index (AUAIST3P) · Akros Technologies, Inc. The Akros index behind the US AI semiconductor concept; TSMC's ADR ranks among its top three companies.
These references describe index-tracking relationships as a matter of fact and are not a recommendation to buy any product. Akros, as the index provider, may receive licensing fees from product sponsors. Review the product's prospectus before investing.
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 Q2 2026, 3-nanometer technology was 30% of wafer revenue, 5-nanometer 33%, and advanced nodes (7nm and below) 77%.
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.
How does TSMC fit the US AI semiconductor concept?
Through its NYSE-listed ADR, TSMC is the foundry of the US AI semiconductor concept: nearly every leading AI accelerator, from NVIDIA's Blackwell GPUs to Google's TPU, is fabricated on its leading-edge nodes with CoWoS advanced packaging, and Q2 2026 revenue rose 33.7% in US dollars to $40.20 billion (TSMC 6-K, Jul 16, 2026). In Korea the concept is investable via the KODEX US AI Semiconductor TOP3 Plus ETF (0151S0), which holds the TSMC ADR as one of its three core names (Samsung Asset Management).
What was TSMC's latest quarterly revenue?
TSMC reported Q2 2026 consolidated revenue of NT$1,270.38 billion, or US$40.20 billion, up 36.0% year over year in NT$ and 33.7% in US$. Net income was NT$706.56 billion, up 77.4%, with diluted EPS of NT$27.25 (US$4.31 per ADR unit) and a gross margin of 67.7%.
What is TSMC's guidance for the next quarter?
For Q3 2026, TSMC guided to revenue of US$44.6 billion to US$45.8 billion, a gross margin of 65% to 67%, and an operating margin of 56% to 58%, at an assumed exchange rate of NT$32.0 per US dollar. CFO Wendell Huang cited continued strong demand for its leading-edge process technologies, including the steep ramp-up of 2-nanometer technology.
When does TSMC report its next earnings?
TSMC is expected to report Q3 2026 results in mid-October 2026 (it reported Q3 in mid-October in both 2024 and 2025). That date is calendar-estimated and not yet confirmed by the company, so check TSMC's investor relations page. It last reported Q2 2026 on July 16, 2026.
Sources & references
- TSMC Reports Second Quarter EPS of NT$27.25 (Form 6-K, Exhibit 99.1) · Taiwan Semiconductor Manufacturing Company / SEC EDGAR, 2026-07-16
- 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 2Q26 Earnings Release (Investor Relations) · Taiwan Semiconductor Manufacturing Company, 2026-07-16
- 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, 2026-07-20
- KODEX 미국AI반도체TOP3플러스 ETF (0151S0) — product page · Samsung Asset Management, 2026-01-13