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Taiwan Semiconductor Manufacturing Company Limited manufactures chips from designs supplied by its customers, who pay for that production. This is a dedicated foundry: customer designs become physical semiconductors through its manufacturing processes.
Taiwan Semiconductor Manufacturing earns revenue according to the wafers customers order and the technologies they choose. Manufacturing and operating costs determine how much becomes operating profit. Factories and equipment also require substantial cash investment, so profitable production and returns from expanding capacity are separate questions.
High Performance Computing accounted for 58% of net revenue in 2025, up from 51% in 2024. The company identified this platform as the main source of annual revenue growth. Its demand therefore matters increasingly to the manufacturing business, although its sales share does not establish its separate profitability.
Meanwhile, in the second quarter of 2026 exceeded both the preceding quarter and the second quarter of 2025. Expansion raises the importance of converting demand into earnings and cash through semiconductor cycles.
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