Taiwan Semiconductor Manufacturing Co, is expected to post a fifth straight quarter of record earnings on July 16. An LSEG SmartEstimate projected second-quarter net profit to rise 59% year on year to T$632.6 billion (US$19.65 billion).

Demand for AI chips has boosted orders for TSMC’s 3-nanometre and 2-nanometre processes, as well as CoWoS, its advanced packaging technology.

Investors will watch whether TSMC changes the outlook it gave in April, when it forecast full-year revenue growth of more than more than 30% in US dollar terms.

TSMC also said 2026 capital spending would be at the high end of $52 billion to $56 billion.

Industry analyses say CoWoS capacity remains oversubscribed through 2026, meaning advanced packaging could remain a bottleneck for AI accelerators.

TSMC is investing $165 billion in Arizona, where its first fab has started producing 4-nanometre chips.

Strong demand for 2-nanometre chips is one reason investors are watching the results closely.

🔗 Source: Reuters

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