{"type":"rich","version":"1.0","provider_name":"Transistor","provider_url":"https://transistor.fm","author_name":"The Earnings Debate","title":"Taiwan Semiconductor Manufacturing Company Limited (TSM) Announced Q2 2026 Earnings on July 16, 2026, Reporting \"revenue of USD 40.2 billion\".","html":"","width":"100%","height":180,"duration":1040,"description":"Taiwan Semiconductor Manufacturing Company Limited reported its financial results for the second quarter of 2026.\nManagement stated they concluded the second quarter with \"revenue of USD 40.2 billion\". Second quarter gross margin was 67.7%.\nAdvanced technology accounted for 77% of wafer revenue.\nThe company noted that 2-nanometer process technology contributed 3% of wafer revenue in the second quarter, while 3-nanometer, 5-nanometer and 7-nanometer accounted for 30%, 33% and 11% respectively.\nHigh performance computing increased 20% quarter-over-quarter to account for 66% of second quarter revenue.\nRegarding business updates, management highlighted that \"AI-related demand continues to be extremely robust\". They noted that the emergence of Agentic AI is leading to a resurgence in the role of CPUs in AI data centers. To support strong structural demand, the company decided to raise its full year 2026 capital budget to be \"between USD 60 billion and USD 64 billion\". The company also announced \"an additional USD 100 billion investment in Arizona\" to build several more semiconductor wafer fabs for 2-nanometer and below technologies as well as advanced packaging fabs.\nFurthermore, management provided an update on A14 technology, stating development is on track and volume production is scheduled for 2028.\nManagement also introduced A13 and A12, which are scheduled for volume production in 2029.\nFor forward guidance, management expects third quarter revenue to be between USD 44.6 billion and USD 45.8 billion.\nBased on an exchange rate assumption of USD 1 to TWD 32, third quarter gross margin is expected to be between 65% and 67%, and operating margin between 56% and 58%.\nManagement noted that the steep ramp-up of 2-nanometer technology is expected to dilute gross margin by about 3 to 4 percentage points in the second half of the year.\nFor the full year 2026, the company now expects revenue growth to be \"slightly above 40% year-over-year in U.S. dollar terms\".","thumbnail_url":"https://img.transistorcdn.com/xJuh_6koFF8CKKFzV-oIB_PzOA86GyxN802qWUMHjC4/rs:fill:0:0:1/w:400/h:400/q:60/mb:500000/aHR0cHM6Ly9pbWct/dXBsb2FkLXByb2R1/Y3Rpb24udHJhbnNp/c3Rvci5mbS80ODli/Mjg2OGQ5YjVkMzU2/Yjg0NzMxNTJiZGRj/NzFjOC5qcGVn.webp","thumbnail_width":300,"thumbnail_height":300}