All eyes are on TSMC as it reports second-quarter earnings on July 16, with analysts expecting gross margins to approach 70% on booming AI-related orders.
First-half revenue reached NT$2.4 trillion ($75.5 billion), up 35.6% year over year, driven by sustained high utilization of 3nm and 5nm capacity. The company’s Q1 gross margin already hit 66.2%, and Commercial Times analysts project Q2 margins could top the upper end of TSMC’s 67.5% guidance.
The momentum extends into next-generation nodes. TSMC’s N2P process, featuring an enhanced nanosheet architecture, is expected to enter mass production in the second half of 2026. It will power Apple’s upcoming A20 and A20 Pro chips, with Qualcomm and MediaTek also building next-generation flagship mobile processors on N2P.
Third-quarter revenue is forecast to grow more than 10% sequentially as AI GPU demand continues to strain advanced packaging capacity. TSMC’s CoWoS and WMCM packaging lines remain the primary bottleneck in the AI chip supply chain.
