TSMC's consolidated revenue for June 2026 came to NT$442.68 billion (approximately ¥2,234.0 billion), setting a new monthly record following May's high. This represents a 67.9% increase year-on-year and a 6.2% increase month-on-month. That said, the US dollar figures often used in news headlines vary depending on which exchange rate is applied. The official figures TSMC discloses monthly are denominated in New Taiwan dollars. The yen conversions here are approximate, calculated using the exchange rates as of the announcement date, July 13, 2026: NT$1 = ¥5.0465 and $1 = ¥162.43.
The more significant change revealed by this record lies not in June's single-month surge but in the strength of the quarter as a whole. Revenue for April through June totaled NT$1,270.381 billion (approximately ¥6,411.0 billion), up 36.0% year-on-year and 12.0% quarter-on-quarter. While demand for AI computing infrastructure continues to push advanced processes higher, TSMC maintains its view that supply will remain tight through 2027. The repeated revenue records reflect a situation in which even accelerated capacity investment cannot fully keep pace with demand.
Why the 67.9% Increase Shouldn't Be Taken at Face Value
Monthly revenue in the first half of 2026 exceeded NT$400 billion in five of the six months, the exception being February. June's NT$442.68 billion (approximately ¥2,234.0 billion) surpassed the previous record set in May—NT$416.975 billion (approximately ¥2,104.3 billion)—by NT$25.705 billion (approximately ¥129.7 billion).
| Month | Revenue | Yen Equivalent | YoY Change |
|---|---|---|---|
| Jan | NT$401.255 billion | approx. ¥2,024.9 billion | +36.8% |
| Feb | NT$317.657 billion | approx. ¥1,603.1 billion | +22.2% |
| Mar | NT$415.191 billion | approx. ¥2,095.3 billion | +45.2% |
| Apr | NT$410.726 billion | approx. ¥2,072.7 billion | +17.5% |
| May | NT$416.975 billion | approx. ¥2,104.3 billion | +30.1% |
| Jun | NT$442.68 billion | approx. ¥2,234.0 billion | +67.9% |
That said, part of the 67.9% growth rate is attributable to a weak comparison base. Revenue in June 2025 was NT$263.709 billion (approximately ¥1,330.8 billion), down 17.7% from May of that year. June 2026's figure is both a record high and a number measured against a low prior-year baseline.
Smoothing out these fluctuations, first-half cumulative revenue reached NT$2,404.484 billion (approximately ¥12,134.2 billion), up 35.6% year-on-year. Second-quarter growth was 36.0%, and both figures fall well short of June's standalone 67.9%. Still, the fact that growth in the mid-30% range persisted for a full half-year carries real weight. This steadier trend, rather than the single-month spike, better represents where TSMC currently stands.
Second Quarter Up 12.0% Quarter-on-Quarter
Adding April's NT$410.726 billion, May's NT$416.975 billion, and June's NT$442.68 billion brings second-quarter revenue to NT$1,270.381 billion (approximately ¥6,411.0 billion). This is up 12.0% from the first quarter's NT$1,134.103 billion (approximately ¥5,723.3 billion) and up 36.0% from the second quarter of 2025's NT$933.792 billion (approximately ¥4,712.4 billion). While TSMC's monthly data is unaudited, quarterly revenue totals can be derived from the published monthly figures.
The company's guidance issued in April, based on an assumed exchange rate of NT$31.7 to the dollar, projected revenue of $39.0–40.2 billion (approximately ¥6,334.8–6,529.7 billion at the July 13 dollar-yen rate). Mechanically converting the actual NT dollar revenue using that same assumed rate yields approximately $40.08 billion (approximately ¥6,510.2 billion at the same day's dollar-yen rate), nearing the upper end of the guidance range. However, this is a conversion for comparison purposes only, not the actual US dollar-denominated results TSMC will announce on July 16. For the same reason, June's figure cannot be treated as a fixed "$13.75 billion (approximately ¥2,233.4 billion)."
What monthly revenue figures confirm is simply how much was sold. They reveal nothing yet about how pricing, product mix, utilization rates, or currency movements affected gross margins. The fact that second-quarter revenue reached NT$1,270.381 billion must be considered separately from where the profit margin will ultimately land within the company's guidance range.
Demand Concentrated in HPC and N3
TSMC's monthly disclosure for June does not break down revenue by customer or application. As such, it cannot be definitively stated that all of the revenue growth stems from AI-related demand. However, the most recent quarterly report offers clues as to where demand is concentrated.
In the first quarter of 2026, High Performance Computing (HPC) accounted for 61% of revenue, up 20% from the prior quarter. Smartphones accounted for 26%. By process, N3 accounted for 25% of wafer revenue, N5 for 36%, and N7 for 13%—meaning advanced processes of 7nm and below together made up 74% of the total. While this figure does not isolate AI accelerators specifically, the concentration toward HPC and advanced nodes is clear.
In April, management described AI-related demand as "extremely strong" and maintained its full-year guidance for US dollar-denominated revenue growth exceeding 30%. Capital expenditure for 2026 is expected to land near the upper end of the $52–56 billion range (approximately ¥8,446.4–9,096.1 billion). Inventory days at the end of the first quarter rose 6 days from the previous quarter to 80 days, which TSMC attributed to the N2 ramp and strong N3 demand. Revenue growth and preparation for next-generation nodes are proceeding in tandem.
Capacity expansion is spreading across three regions. In Tainan, Taiwan, an additional N3 fab is planned, with mass production slated to begin in the first half of 2027. The second Arizona fab in the US is expected to begin N3 mass production in the second half of 2027, and the second Japan fab in 2028. Even existing equipment is being repurposed, with N5 tools converted for N3 use as TSMC balances capacity among N7, N5, and N3.
Even so, building a new fab takes two to three years, and ramping it up takes another one to two years on top of that. TSMC expects supply to remain tight through 2027 as well. June's record revenue reflects not only the strength of demand but also the constraint of how quickly production capacity can be expanded to meet it.
Beyond Revenue: Watching Margins and Supply Capacity
At the July 16 earnings announcement, attention will likely focus less on confirming revenue and more on the details of profit margins. Company guidance calls for a gross margin of 65.5–67.5% and an operating margin of 56.5–58.5%. First-quarter gross margin was 66.2%, lifted by high utilization rates and cost improvements. N3's gross margin is also expected to exceed the company average in the second half of 2026.
On the other hand, TSMC expects the N2 ramp to reduce full-year 2026 gross margin by 2–3 percentage points. Overseas fabs are also expected to be dilutive by 2–3 percentage points in early stages and 3–4 percentage points in later stages. Beyond movements in the NT dollar and US dollar, material and energy costs will also influence margins. Even as monthly revenue sets new records, the upfront costs of capacity expansion do not simply disappear.
What remains to be seen is how closely the approximately $40.08 billion figure—derived using the assumed exchange rate—will match actual US dollar-denominated revenue, where gross margin will land within the guided range, and whether the N3 and N2 capacity expansion timelines can be pulled forward further. Whether June's record translates into sustained profit growth will become clear through these three factors.