Taiwan Semiconductor’s AI Boom Rolls On: June Revenue Jumps 68%

Taiwan Semiconductor Manufacturing Co.

Ltd. (NYSE: TSM ) reported a sharp increase in June revenue on Monday, reflecting continued demand for advanced chips used in artificial intelligence applications.

Taiwan Semiconductor June Revenue Growth The world’s largest contract chipmaker said June consolidated revenue rose 6.2% from May to 442.68 billion New Taiwan dollars (about $15.1 billion).

Revenue climbed 67.9% from the same month last year.

For the first six months of 2026, Taiwan Semiconductor generated consolidated revenue of 2.40 trillion New Taiwan dollars, up 35.6% from the corresponding period in 2025.

The June results extend Taiwan Semiconductor’s strong growth trajectory as major technology companies continue to increase spending on AI infrastructure.

The company manufactures advanced chips for customers, including NVIDIA Corp., Apple Inc., and Advanced Micro Devices Inc.

The latest revenue figures come ahead of Taiwan Semiconductor’s second-quarter earnings report, when investors will look for updates on AI-related demand, capital spending plans, and the company’s outlook for the remainder of the year.

Taiwan Semiconductor’s June revenue of 442.68 billion New Taiwan dollars compares with 416.98 billion New Taiwan dollars in May and 263.71 billion New Taiwan dollars in June 2025.

Analyst Sees Strong AI Demand SemiAnalysis analyst Sravan Kundojjala described the results as “quite robust” in comments to CNBC on Monday, noting that Taiwan Semiconductor’s second-quarter revenue exceeded the high end of its own guidance of $40.2 billion.

He added that the performance was notable because June revenue has typically declined month over month over the past four years.

Kundojjala said AI-related supply remains constrained and Taiwan Semiconductor is “sold out on N3,” its advanced manufacturing process used for many leading AI GPUs and CPUs.

He also estimated the foundry remains on track to generate more than $40 billion in AI chip revenue in 2026, representing nearly one-quarter of total revenue.

Taiwan Semiconductor Earnings In Focus Investors are now looking ahead to Taiwan Semiconductor’s second-quarter earnings report on July 16.

Wall Street expects earnings of $3.77 per share on revenue of $39.76 billion, up from earnings of $2.47 per share and revenue of $30.07 billion a year earlier.

Analysts remain broadly bullish despite the company’s premium valuation of about 37.7 times earnings.

Bank of America recently raised its price forecast to $590, Susquehanna increased its forecast to $575, and Barclays lifted its forecast to $470.

Chip Packaging Expansion Taiwan Semiconductor will build two additional advanced chip packaging plants at the Chiayi Science Park in southern Taiwan, Taiwan’s science and technology minister said Sunday, Taiwan Semiconductor’s first packaging plant at the site is already in mass production, while the second is expected to begin production soon.

The new third and fourth plants are expected to help the park generate more than 300 billion New Taiwan dollars (about $9.35 billion) in annual output and create more than 9,000 jobs.

The expansion comes as Taiwan Semiconductor ramps up CoWoS advanced packaging capacity to meet strong AI-driven demand from customers, including NVIDIA, Taiwan Semiconductor Price Action TSM Price Action: Taiwan Semiconductor shares were up 0.21% at $435.00 during premarket trading on Monday, according to Pro data.

Photo via Shutterstock Read Also: Applied Materials CEO Sees 'Tremendous Visibility' Into Demand