Taiwan Semiconductor Manufacturing Company reported NT$467.6 billion in July revenue, representing 44.7 percent year-over-year growth and 5.6 percent month-over-month expansion, according to the company's announcement.
The growth rate significantly outpaced analyst expectations. TSMC's prior quarterly guidance projected mid-to-high single-digit sequential growth for the third quarter, and the 5.6 percent monthly gain in July places the company above those assumptions. Advanced node capacity serving AI customers drove the results across TSMC's customer base, which includes chip designers for artificial intelligence inference, data center processors, and consumer devices.
TSMC is the world's largest contract chip manufacturer and supplies foundry services to Nvidia, AMD, Apple, and dozens of other semiconductor companies. The manufacturer has spent the past 18 months ramping production of chips built on its 3-nanometer and 5-nanometer processes to meet demand for large language model inference and training accelerators.
The company's sequential growth of 5.6 percent represents acceleration from June's monthly pace, which had been constrained by seasonal summer weakness. Year-over-year comparisons are inflated by a low base: July 2025 revenue totaled NT$323.3 billion, giving TSMC an easier year-ago comparison. The company is scheduled to report full second-quarter earnings in late August, which will provide updated third-quarter guidance and color on demand trends heading into the final two quarters of 2026.
TSMC's July revenue at 44.7 percent YoY growth is nearly double the semiconductor industry's average growth rate during the same period. The pace comes from concentration of AI spending among a handful of large foundries rather than broad-based recovery across chip manufacturing. Rivals Samsung Electronics and Intel have not reported comparable sequential acceleration in their most recent results.
