TSMC posts $40.2bn Q2 revenue, guides higher on 2nm demand
Taiwan Semiconductor's 33% jump in second-quarter revenue to $40.2 billion, paired with an acceleration in Q3 guidance, signals that demand for advanced chips remains robust enough to drive unusual growth at a $2.1 trillion company.
Taiwan Semiconductor Manufacturing reported second-quarter revenue of $40.2 billion, a 33% increase from the year-ago period. The world's largest contract chipmaker also projected that this growth will quicken in the current period, with revenue forecast between $44.6 billion and $45.8 billion.
At the midpoint of that guidance range, third-quarter revenue would grow roughly 37% over the $31.1 billion recorded in the third quarter of 2025. Management also told investors to expect full-year revenue to climb 40%. For a company valued at $2.1 trillion—ranking as the sixth-largest publicly traded firm globally—accelerating top-line growth at this scale is a rare market anomaly.
The primary driver is a rapid technological transition within TSMC's most advanced manufacturing segments. Nearly two-thirds of the company's revenue now comes from chips built at nodes of 5 nanometers or smaller. This concentration at the bleeding edge of silicon manufacturing highlights the premium the market places on computing power capable of handling complex artificial intelligence workloads.
During the second quarter, revenue from 3-nanometer chips rose from 25% to 30% of the total, while the legacy 5-nanometer contribution slipped from 36% to 33%. Most notably for future margins, TSMC recorded its first revenue from next-generation 2-nanometer chips, which carry a reported price of $30,000 per wafer.
TSMC's technological edge continues to insulate its market position from competitors. The foundry holds an estimated 73% share of the global contract manufacturing market. In 2025 alone, it produced more than 12,680 different products across 305 process technologies for major chip designers including Nvidia, Advanced Micro Devices, and Broadcom.
