Taiwan Semiconductor Manufacturing Company reported $14.5 billion in revenue for July, a 44.7% year-over-year increase driven by demand for artificial intelligence chips, the company said in a filing with the SEC.
The July figure extends a broader acceleration. TSMC generated $89.1 billion in revenue across the first seven months of 2026, up 37% year-over-year. The company raised its capital expenditure guidance to a record $60 billion to $64 billion for 2026, up from a prior range of $52 billion to $56 billion. TSMC expects full-year sales to grow slightly above 40% and estimates current-quarter sales growth at 47% year-over-year.
TSMC is the primary manufacturing partner for Nvidia, Apple and other major semiconductor designers. It produces the advanced chips that power generative AI systems and consumer devices. The company's capacity constraints have become a binding constraint on AI chip supply as data centers race to expand inference and training capacity.
TSMC's stock price in Taiwan has risen 50% year-to-date, more than double the 20% gain in Nvidia shares over the same period. TSMC committed $40 billion in 2022 and $36.3 billion in 2023 as it expanded capacity in Taiwan and began production in Arizona.
The CapEx increase to $60 billion to $64 billion is one of the largest capital commitments in semiconductor industry history. The company expects AI-driven demand to justify sustained investment at these levels for multiple years.
TSMC's July results are a leading indicator for the broader semiconductor cycle. The company reports monthly revenue before quarterly earnings, making its sales figures one of the first data points investors and analysts use to assess chip demand trends. If TSMC's growth rate falls below 40% in coming quarters, demand is normalizing. If it stays above 40%, AI infrastructure spending remains in an expansion phase.
