AI chips make up about a third of TSMC revenue

TSMC’s AI-related business has become a central driver of the foundry’s growth as customers rush to secure manufacturing capacity. Chief executive CC Wei declined to update the company’s prior forecast that AI revenue would grow in the mid-to-high 50 percents at a compound annual growth rate between 2026 and 2030, inclusive, but said the outlook was getting stronger.

TSMC is adding another $100 billion to its Arizona capacity plan, taking total investment in its US operations to $265 billion over several years. The expansion includes four more fabs focused on 2 nanometer and smaller processes, alongside existing 3 nanometer plans and conversions from 5 nanometer foundries to 3 nanometers. Annual capex rose from $29.8 billion in 2024 to $40.9 billion in 2025, and the 2026 outlook has been lifted from $52 billion to $56 billion to $60 billion to $64 billion.

In Q2 2026, TSMC reported record revenues of $40.2 billion, up 33.7 percent year on year and up 12 percent sequentially from Q1 2026, while net income rose 74.7 percent year on year to $22.37 billion. The HPC segment generated $26.53 billion in sales, and an estimate put AI training and inference chips at $13.31 billion, representing about a third of overall TSMC revenues and about half of HPC segment revenues.