TSMC’s August revenue climbed 53.3% year on year to NT$514.8 billion ($16.35 billion), underscoring that demand for chips used in artificial intelligence applications is sustaining the company’s growth. Monthly sales were also up 10.1% from July, marking a fourth consecutive month of rising revenue for the world’s largest contract chipmaker.
The stock market reaction was muted, with TSMC shares closing 0.61% lower on Thursday ahead of the release. The company had told investors on its July quarter earnings call that AI-related demand remained "extremely robust," language the latest figures appear to confirm.
TSMC’s strong monthly showing follows a second quarter in which profit rose more than 77% year on year, and the firm has guided third-quarter revenue between $44.6 billion and $45.8 billion. Industry data show TSMC retained commanding control of the global foundry market in the second quarter, holding a 72.5% share.
That dominance matters because TrendForce reports TSMC’s advanced 5-, 4- and 3-nanometer capacity was fully booked during the quarter, a tightness driven in part by high demand for AI server processors. Samsung Foundry and China’s SMIC ranked second and third with 5.9% and 5.4% shares respectively, while the top 10 foundries together posted nearly $53.49 billion in combined revenue in Q2 amid constraints on advanced process supply.
Separately, TSMC and Dutch equipment maker ASML announced an initiative this week aimed at accelerating the industry transition to next-generation lithography. TSMC said it plans to adopt ASML’s High NA technology in large-scale manufacturing for advanced nodes starting in 2030, and it expects wider adoption as AI applications push for more complex transistor architectures.
With advanced-node capacity booked and a multi-year roadmap for new lithography technology in place, TSMC’s near-term performance will hinge on sustaining AI-driven orders and meeting the rollout timetable for next-generation manufacturing tools. The company’s Q3 guidance will provide the next concrete test of whether last month’s momentum continues.
