TSMC profit surges 77% on AI chip demand, hits record

Taiwanese chipmaker TSMC announced its second-quarter results on Thursday, posting a record net profit of NT$706.6 billion（約110兆円） (US$22 billion（約3.5兆円）) for the April–June period. The figure represented a 77.4 percent surge year-on-year and exceeded analyst expectations by a wide margin, beating consensus forecasts of NT$624.4 billion（約100兆円）. Quarterly revenue climbed 36 percent to NT$1.3 trillion（約210兆円）, and the quarter's profit also surpassed TSMC's previous record of NT$572.48 billion（約92兆円） set in the first three months of 2026.

The profit surge is directly attributable to the global artificial intelligence infrastructure boom. Governments and major technology companies are investing heavily in data centres capable of training and operating large AI systems—including chatbots, image generators, and task-execution agents. TSMC, as the world's largest contract manufacturer of microchips for everything from Apple phones to Nvidia processors, has emerged as one of the primary beneficiaries of this spending wave. "The AI megatrend continues to drive the need for more and more computation," TSMC chairman CC Wei told an earnings call.

Analysts underscored the scale and staying power of the demand. Counterpoint Research senior analyst William Li told AFP that TSMC's revenue growth demonstrated "AI infrastructure investment remains exceptionally strong despite macro uncertainty," and confirmed that "demand for AI GPUs, AI ASICs and advanced packaging continues to exceed expectations." However, Li also cautioned that near-term headwinds could emerge: "EUV (extreme ultra-violet lithography tools) supply constraints and overseas fab investments may limit capacity expansion and weigh on margins in the near term."

While some observers have raised concerns about inflated valuations and a potential tech-sector bubble—given the eye-watering sums committed to AI infrastructure—Omdia principal analyst Simon Chen argued those fears were "overstated." Chen emphasized that "the demand we see is structural, backed by massive, tangible capital expenditures from hyperscalers," suggesting that the current investment wave rests on genuine demand rather than speculation.

TSMC's record quarter reflects the intensity of the AI infrastructure buildout now underway globally. Governments and technology companies are competing to secure data-centre capacity and the specialized chips needed to train and run large AI systems, a dynamic that has created both shortages and rising prices for chipmakers. As the primary contract manufacturer for advanced processors used by major technology firms, TSMC sits at the centre of this supply chain.

The 77.4 percent year-on-year profit surge and 36 percent revenue growth are substantial, yet analysts note they mask emerging constraints. William Li's warning about EUV tool shortages and the capital demands of overseas fabrication plants suggests that while demand remains robust, the company's ability to expand production fast enough may become a bottleneck. That said, industry observers differentiate between temporary supply-chain friction and a broader market bubble; analyst Simon Chen characterized concerns about overvaluation as "overstated," arguing that the spending patterns are "structural" and backed by genuine capital commitments from large cloud providers rather than speculative excess.

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