TSMC's July Revenue Jumps 44.7% Year-on-Year

AI Demand Drives Revenue Growth
Revenue Outlook for This Year Raised

TSMC, the world's largest foundry (semiconductor contract manufacturing) company, saw its revenue in July surge by over 44% year-on-year, driven by strong demand for artificial intelligence (AI) semiconductors. As concerns about the profitability of recent AI investments have led to a correction in semiconductor stocks, TSMC's robust sales are seen as evidence that AI infrastructure investment remains strong.

Reuters Yonhap News

According to CNBC on August 10 (local time), TSMC announced that its revenue last month reached 467.58 billion New Taiwan dollars (approximately 14.5 billion US dollars), up 44.7% from the same month last year.

TSMC manufactures advanced chips for major global technology companies, including Nvidia and Google's custom-designed semiconductors. As a result, TSMC's monthly revenue is closely watched by the market as a leading indicator of global technology demand, including for AI semiconductors.

Ben Barringer, Head of Technology Research at Quilter Cheviot, told CNBC, "TSMC is forecasting annual revenue growth of around 40% this year, but July's revenue exceeded that level," adding, "This shows that demand remains strong so far."

However, he pointed out that since semiconductor demand can change rapidly, it is important not to read too much into a single month's performance.

The proportion of TSMC's AI-related business is also rapidly expanding. According to the company's second-quarter results announced last month, the high performance computing (HPC) segment—which includes AI semiconductor sales—accounted for 66% of total revenue.

TSMC also raised its performance outlook for the year. The company expects its 2026 revenue, measured in US dollars, to grow at a rate slightly above 40% year-on-year. Its annual capital expenditure forecast was also raised to a range of 60 billion to 64 billion US dollars, higher than previously projected.

This content was produced with the assistance of AI translation services.