TSMC August revenue rises 53.3% to NT$514.8 billion on AI chip demand

September 10, 2026 at 10:35 AM2 min

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Taiwan Semiconductor Manufacturing Co. reported August revenue of NT$514.8 billion ($16.3 billion), a 53.3% increase from a year earlier. The world's largest contract chipmaker said it cannot keep up with demand from the global AI infrastructure buildout even as it builds new factories at an unprecedented pace.

Key Facts

TSMC's August revenue reached NT$514.8 billion ($16.3 billion), a 53.3% year-over-year increase.
Analysts on average expect 46.8% sales growth for the current quarter.
TSMC is constructing and equipping about 20 factories at home and overseas, compared with a typical record of four or five new buildings simultaneously in the past.
TSMC expects capital expenditure to reach a record $60 billion to $64 billion in 2026 and forecasts full-year sales growth slightly above 40% in US dollar terms.
TSMC shares have gained about 60% since the beginning of the year.

Demand Outstrips Supply

The go-to chipmaker for Nvidia Corp. and Apple Inc. said recently that it can't catch up with demand even as it's building new factories at an unprecedented pace. TSMC Deputy Co-Chief Operating Officer Cliff Hou said this month that the company is trying to construct and furnish about 20 factories at home and overseas, while its typical record in the past would see it working on four or five new buildings simultaneously. "Right now you're almost 4x or 5x, trying to catch up, but still you cannot meet demand," Hou said, adding the company's needs for chipmaking tools nearly doubled since the end of last year.

Advanced Equipment Investment

TSMC recently struck an agreement with ASML Holding NV to start using the Dutch company's state-of-the-art High NA extreme ultraviolet lithography machines in mass production starting from 2030. Before the deal, the Taiwanese company had repeatedly said it wouldn't deploy ASML's most advanced systems — which can cost $400 million a piece — just yet due to cost concerns. TSMC also needs to spend more on upgraded gear.

Financial Outlook

In July, TSMC raised its spending and revenue projections for the year, reflecting confidence that torrid growth in demand for AI chips would extend into 2027 and beyond. TSMC expects its capital expenditure to reach a record level of $60 billion to $64 billion in 2026 and forecasts its full-year sales to grow slightly above 40% in US dollar terms. Bloomberg Intelligence analyst Charles Shum said consensus might underestimate TSMC's potential for 2027 margin resilience, with expectations for 31% earnings growth on 35% revenue growth in 2027 implying gross margin of 65.5% versus 66.4% in 2026.