TSMC Delivers Strongest Quarterly Results! 2nm Mass Production Progress Revealed—Are Global AI Giants All Relying on It?

Amid the ongoing AI-driven surge in chip demand, TSMC (2330), the world's leading semiconductor foundry, has released its Q2 2026 financial results, delivering another outstanding performance. Consolidated revenue reached NT$1.27038 trillion, with net profit of approximately NT$706.56 billion and earnings per share (EPS) of NT$27.25, representing a 77.4% year-on-year increase. With strong demand for AI and high-performance computing (HPC) and 2nm process technology now contributing to revenue, TSMC's technological advantage in advanced processes has further expanded.

Q2 Revenue Surpasses NT$1.27 Trillion EPS at NT$27.25, Profit Up 77.4% Year-on-Year

TSMC has released its consolidated financial results for Q2 2026, reporting quarterly revenue of approximately NT$1.27038 trillion, a 36% increase year-on-year and a 12% increase quarter-on-quarter. In terms of profitability, Q2 net profit reached NT$706.56 billion, up 77.4% year-on-year and 23.4% quarter-on-quarter. EPS stood at NT$27.25, also up 77.4% year-on-year, demonstrating the strong profit-generating power driven by AI demand. In U.S. dollars, Q2 revenue was $40.2 billion, up 33.7% year-on-year and 12% quarter-on-quarter, in line with market expectations of continued warming in AI chip demand.

Gross Margin at 67.7%, Profitability Remains at High Levels

In addition to record-high revenue and profit, TSMC's profitability metrics for Q2 remain at high levels. According to the financial report, Q2 figures were as follows:

Gross margin: 67.7% Operating margin: 60.3% Net profit margin: 55.6%

With continued growth in demand for advanced processes, HPC chips, and AI accelerators, TSMC has maintained excellent capacity utilization rates, allowing overall profitability to remain firmly at high levels.

2nm Begins Contributing to Revenue, Advanced Process Share Soars to 77%

Process technology remains TSMC's greatest competitive advantage. According to the latest financial report, the revenue breakdown by process node for Q2 2026 is as follows:

2nm: 3% 3nm: 30% 5nm: 33% 7nm: 11%

Overall, advanced processes of 7nm and below accounted for 77% of wafer sales revenue, indicating that advanced nodes have become TSMC's primary revenue source. Although 2nm currently accounts for only 3%, its official contribution to revenue signifies that the next-generation process has gradually entered mass production. As customer adoption accelerates, this share is expected to continue expanding.

AI and HPC Demand Remains Strong—TSMC's Growth Momentum Still Robust

The market widely believes that AI servers, high-performance computing (HPC), smartphones, and next-generation AI devices continue to drive demand for high-end chips, serving as key engines boosting TSMC's revenue and profitability. In particular, 3nm and 5nm remain the primary production nodes for current AI chips, and the fact that 2nm has begun contributing to revenue indicates a smooth transition to the next generation of advanced processes. As global AI applications continue to expand, TSMC's technological leadership in advanced processes is expected to further solidify its competitive advantage as the world's leading foundry.