TSMC Reports Record Q2 Revenue Driven by AI Chip Demand and Advanced Node Adoption

## Record Quarter TSMC reported NT$839 billion ($26.3 billion USD) in Q2 2026 revenue, up 38% from Q2 2025 and 8% sequentially from Q1 2026. Gross margin reached 58.1%, above consensus estimates of 56.4%, as the company's advanced node utilization remained above 90%. ## AI Is the Engine AI-related chips now represent approximately 28% of TSMC's wafer revenue, up from 16% a year ago. NVIDIA's Blackwell GPUs, AMD's MI350 accelerators, Google's TPU v5e, and Apple's M4 series all manufacture at TSMC's 3nm (N3E) node. N3E remains effectively sold out through Q3 2027. ## N2 Ramp TSMC's 2nm (N2) process is on track for volume production in Q4 2026, with Apple and NVIDIA as anchor customers. Early engineering wafers show an 18% performance improvement and 25% power reduction compared to N3E at equivalent transistor density. ## Geographic Diversification TSMC's Arizona fab (Fab 21, Phase 1) achieved volume production at N4 process technology in Q1 2026. Phase 2, targeting N2, remains on schedule for 2028. The company also confirmed Japanese Fab 23 will begin risk production of N6 process technology by Q4 2026. ## Guidance TSMC guided Q3 2026 revenue of $27.6-28.4 billion at current exchange rates, representing approximately 5-8% sequential growth. The company raised full-year 2026 revenue growth guidance to 35-37% from the prior 30-33%.