TSMC Posts Record Q2 Revenue of $40.2B, Gross Margin Hits 67.7% on AI Chip Demand

According to Hana Securities analyst Kim Rok-ho, TSMC reported Q2 2026 results on July 16 with revenue of $40.2 billion, up 34% year-over-year and 12% quarter-over-quarter, exceeding market expectations. Gross margin reached 67.7%, a record high surpassing the company's guided range.

AI server and data center demand drove the performance, with HPC (high-performance computing) revenue up 20% sequentially to 66% of total sales, while smartphone chip sales declined to 22%. Advanced 3-nanometer and 5-nanometer processes accounted for over half of revenue, with 2-nanometer process revenue beginning to contribute. Hana Securities raised 2026 full-year revenue growth guidance to 40% and above from 30%, and increased capital expenditure guidance to $600-640 billion from $520-560 billion.