Q2 2026 Taiwan Semiconductor Manufacturing Co Ltd Earnings Call (Chinese, English) Transcript
Key Points
- TSMC reported a strong second-quarter revenue of USD 40.2 billion, driven by robust demand for leading-edge process technologies.
- The company expects a 12% sequential increase in third-quarter revenue, indicating strong growth momentum.
- TSMC is raising its full-year 2026 capital budget to USD 60-64 billion to support customer growth and capture demand from industry megatrends like 5G, AI, and HPC.
- The company plans significant capacity expansion, including additional investments in Arizona and new fabs in Taiwan and Japan, to meet strong multi-year demand.
- TSMC's advanced technology, defined as 7-nanometer and below, accounted for 77% of wafer revenue, showcasing its leadership in cutting-edge semiconductor manufacturing.
- The ramp-up of 2-nanometer technology is expected to dilute gross margins by 3-4 percentage points in the second half of the year.
- TSMC faces potential gross margin dilution from the ramp-up of overseas fabs, which could widen to 3-4% in the latter stages.
- The company is experiencing increased inventory days, primarily due to the ramp of 2-nanometer technology.
- TSMC's mature node demand in commodity areas remains weak, with strong demand limited to specific segments like power management ICs and CMOS image sensors.
- The company acknowledges macroeconomic uncertainties and rising component prices, which could challenge consumer and price-sensitive end-market segments.
(Spoken in Foreign Language)
Good afternoon, everyone, and welcome to TSMC's second-quarter 2026 earnings conference and conference call. This is Jeff Su, TSMC's Director of Investor Relations and your host for today.
Today's event is being webcast live through TSMC's website at www.tsmc.com, where you can also download the earnings release materials. If you are joining us through the conference call, your dial-in lines are in listen-only mode.
The format for today's event will be as follows. First, TSMC's Senior Vice President and CFO, Mr. Wendell Huang, will summarize our operations in the second quarter 2026, followed by our guidance for the third quarter 2026. Afterwards, Mr. Huang and TSMC's Chairman and CEO, Dr. C.C. Wei, will jointly provide the company's key messages. Then we will open both the floor and the line for the question-and-answer session.
As usual, I'd like to remind everybody that today's discussions may
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