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The second quarter of 2026 revenue was US $40.2 billion, up 36% year over year.
was 60.3%, showing exceptional manufacturing profitability.
was about NT $783 billion and capital spending was NT $496 billion, so operations still generated cash through a heavy expansion quarter.
The key operating issue is whether the 2-nanometer ramp and overseas fabs can scale without eroding the economics that made the latest quarter so strong. Management said the 2-nanometer ramp should dilute second-half by about 3 to 4 percentage points, and overseas fabs already reduced margin in the quarter.
Sustained demand matters because Taiwan Semiconductor Manufacturing has raised fiscal year 2026 capital spending to US $60 billion to US $64 billion, and that larger buildout will only pay off if utilization, yields, and pricing stay strong enough to offset higher depreciation and startup costs. If they do not, the business can still grow while the returns on this expansion weaken.
TSMC is a pure-play foundry: customers pay it to turn chip designs into finished wafers and advanced packaging at scale, rather than sell branded chips of its own. In fiscal year 2025, it deployed 305 process technologies, manufactured 12,682 products, and served 534 customers.
TSMC reports one foundry business, so investors should read the company by manufacturing services and end markets, not by separate segments. Its main markets are computing infrastructure, smartphones, Internet of Things devices, automotive, and digital consumer electronics.
Management is pushing newer process nodes and overseas fabs, but the key operating dependency is still efficient leading-edge production. In the second quarter of fiscal year 2026, advanced technologies made up 77% of wafer revenue and total revenue reached NT $1,270.38 billion, up 36% year over year.
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