Taiwan Semiconductor Manufacturing Company (TSMC) reported its financial results for the first quarter of 2026 on April 19, 2026, disclosing a net revenue of US$35.67 billion. This figure represents a 35.1% increase compared to the same period in 2025. The company attributed the growth primarily to sustained demand for advanced semiconductor technologies, particularly those utilized in high-performance computing (HPC) and artificial intelligence (AI) applications. Net income for the quarter also saw significant gains, reflecting the high utilization rates of the company’s 3-nanometer (N3) and 5-nanometer (N5) process nodes.
According to Chief Financial Officer Wendell Huang, advanced technologies—defined as 7-nanometer and smaller—accounted for approximately 70% of total wafer revenue during the quarter. The 3-nanometer technology alone contributed nearly 25% of the revenue, driven by major smartphone and data center clients. TSMC’s Chief Executive Officer, C.C. Wei, stated during the earnings call that the company is seeing a structural shift in demand as AI integration expands from cloud servers to edge devices, including AI-enabled PCs and mobile handsets. The company confirmed that its next-generation 2-nanometer (N2) technology remains on track for volume production in late 2026.
A significant portion of the report focused on TSMC’s ongoing expansion in the United States. The company reaffirmed its commitment to a total investment of US$165 billion in its Phoenix, Arizona, site. The first fabrication plant (Fab 1) at the Arizona complex has successfully commenced volume production using 4-nanometer technology as of early 2025. TSMC announced that the second facility (Fab 2) is currently under construction and is scheduled to produce 2-nanometer chips by 2028. Furthermore, plans for a third facility (Fab 3) are moving forward, with the intention of utilizing even more advanced process technologies by the end of the decade.
TSMC’s capital expenditure for the first quarter was reported at US$9.2 billion, as the company continues to build out capacity globally. In addition to the Arizona projects, the company highlighted progress on its specialty technology fab in Kumamoto, Japan, and its planned facility in Dresden, Germany. For the second quarter of 2026, TSMC management provided a revenue guidance range of US$36.5 billion to US$37.3 billion. The company maintains its long-term target of a gross margin of 53% or higher, despite the initial costs associated with ramping up overseas manufacturing facilities and the transition to 2-nanometer production.