TSMC reports near‑50% year‑on‑year July revenue rise on AI chip demand

TSMC said its July sales jumped to 467.58 billion New Taiwan dollars, roughly $14.5 billion, representing a 44.7 % increase compared with the same month last year. The surge reflects growing orders for AI‑focused semiconductors from major customers such as Nvidia and Google, and pushes the company ahead of its own guidance for about 40 % revenue growth in 2026.

The Taiwanese manufacturer’s second‑quarter results indicated that high‑performance computing, the segment that includes AI chips, contributed 66 % of total revenue. Chairman C.C. Wei described the AI‑related demand as “extremely robust,” while Ben Barringer of Quilter Cheviot noted that the strong July figures ease pressure on the company’s performance in the slower August and September months. He cautioned, however, that semiconductor demand can shift quickly and monthly data should be interpreted carefully.

TSMC also raised its capital‑expenditure outlook for the year to a range of $60 billion‑$64 billion, signalling confidence in continued expansion of its production capacity. The upbeat results helped lift European chip stocks, with ASML, Infineon and STMicro all posting gains, even as the broader PHLX Semiconductor index remains down about 15 % from its June peak but up roughly 72 % year‑to‑date. TSMC’s own shares have risen 50 % so far this year.

The strong performance underscores the pivotal role of advanced chip makers in scaling AI infrastructure, a trend that could shape investment flows across both the semiconductor and broader technology sectors for the coming years.