The share price of Taiwan Semiconductor Manufacturing Company Limited (TSMC), a Taiwanese multinational semiconductor contract manufacturing and design company, rose 3.88% on Tuesday, following a recovery in global tech stocks after a record selloff.
The report by Nikkei Asia regarding a planned price raises for advanced and mature chip production services by up to 10% in 2027 could be a catalyst for TSMC to extend gains tomorrow.
Last week, TSMC delivered its highest-ever quarterly net profit in the second quarter of 2026, buoyed by surging demand for artificial intelligence semiconductors. The chipmaker’s gross margin surpassed company projections, extending a streak of robust earnings growth and reinforcing its dominant position as a key supplier to major technology companies.
In the three months ended June, Taiwan Semiconductor Manufacturing Co. reported a net profit of NT$706.6 billion, representing a 77.4% increase compared to the same period in the previous year. This performance outpaced analyst expectations, with the reported figure beating the NT$623.73 billion projected by Bloomberg. The latest result marks the ninth straight quarter in which TSMC has achieved double-digit growth in net earnings.
Second-quarter revenue reached NT$1.27 trillion, up 36% compared to the prior year’s corresponding period. Earnings per share climbed to NT$27.25, higher than NT$15.36 a year ago and NT$22.08 in the preceding quarter.
The upswing was fueled by heightened global demand for AI chips, with TSMC’s manufacturing expertise supporting key clients including NVIDIA and Apple. Advanced semiconductor products using process technology below 7 nanometers contributed to 77% of wafer sales, reflecting a shift towards high-performance chips.
Improved production efficiency and greater capacity utilization lifted gross margin to 67.7% for the quarter, outstripping the company’s earlier forecast range of 65.6% to 67.5%. Gross margin also advanced by 9.1 percentage points year-on-year and rose 1.5 points from the previous quarter.
