Taiwan Semiconductor Manufacturing Co. (TSMC) reported a 44.7% year-on-year increase in July revenue to 467.58 billion New Taiwan dollars ($14.5 billion), underscoring continued demand for chips used in artificial intelligence infrastructure.
Image credit: Taiwan Semiconductor Manufacturing Company Limited (TSMC)
TSMC reported a sharp increase in July sales as demand for artificial intelligence related semiconductors continued to drive growth at the world’s largest chipmaker.
Revenue rose 44.7% from a year earlier to 467.58 billion New Taiwan dollars ($14.5 billion), according to the company’s monthly figures released Monday. TSMC manufactures advanced chips for major technology companies, including Nvidia and Google, making its sales closely watched as an indicator of demand across the AI semiconductor industry.
The results come as technology companies continue to commit significant amounts of capital to AI infrastructure, including the development and purchase of advanced semiconductors. Investors have increasingly focused on whether the spending will generate sufficient returns to justify the scale of investment.
TSMC is now guiding for 40% growth in revenues for this year, so July’s numbers put it ahead of that figure,” said Ben Barringer, head of technology research at Quilter Cheviot. He added that semiconductor demand can shift quickly and monthly figures should not be viewed in isolation.
TSMC does not provide commentary alongside its monthly revenue reports. However, during its second-quarter earnings announcement, the company said demand for AI-related products remained strong.
High-performance computing, the segment where TSMC records AI chip sales, accounted for 66% of the company's revenue in the second quarter.
Chairman C.C. Wei said during the earnings report that “AI-related demand continues to be extremely robust.” TSMC also raised its capital expenditure forecast for 2026 to between $60 billion and $64 billion as it continues investing in additional production capacity.
The strong sales report helped lift semiconductor stocks in Europe on Monday. ASML gained more than 2%, while Infineon and STMicroelectronics also traded higher.
Semiconductor stocks have recently faced pressure amid concerns over the sustainability of AI-related capital spending. The PHLX Semiconductor Index is down about 15% from its June high, although it remains around 72% higher for the year.
TSMC shares have gained about 50% so far this year. The strong monthly result comes as investors closely monitor whether heavy technology spending on AI can continue to support semiconductor growth.
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