TSMC (TWSE: 2330, NYSE: TSM) gained on Monday after traders got a much stronger June sales figure before the company’s second-quarter report. Revenue for the month came to NT$442.68 billion,
TSMC (TWSE: 2330, NYSE: TSM) gained on Monday after traders got a much stronger June sales figure before the company’s second-quarter report.
Revenue for the month came to NT$442.68 billion, up 6.2% from May and 67.9% from June 2025. It was the magnitude of the year-on-year growth that really spurred the stock along. Investors now have new sales figures before the chipmaker reports its full results for the quarter on Thursday, July 16.
The six-month tally was significantly more compared to the previous year as well. TSMC generated NT$2.4 trillion ($74.99 billion) between January and June. The sum was up by 35.6% compared to the first half of 2025.
TSMC produces chips for processors developed by other companies, like phone manufacturers, computer makers, data centers, and supercomputers used in large AI applications. TSMC’s customers include Nvidia (NASDAQ: NVDA), Apple (NASDAQ: AAPL), and Advanced Micro Devices (NASDAQ: AMD).
Counterpoint Research pegged TSMC’s pure-foundry market share in the first quarter at 73%. The overall market increased by 30% compared to a year ago during the same quarter. Growth was mostly driven by demand for AI graphics processors, custom CPUs, and advanced packaging.
A variety of manufacturing lines led to that result. Yield from the N3 technology process increased. Plants utilizing N4 and N5 manufacturing were still occupied due to increased demand from AI GPU customers. In addition, older nodes experienced constrained spare capacity while reorganizing the production plan of the firm. Meanwhile, CoWoS packaging increased as well.
The second-ranked company on the list was Samsung Electronics (KRX: 005930), and its market share declined compared to the last quarter. Despite that, Samsung must enhance yield rates in its new manufacturing process, which means that a bigger proportion of the produced chips must go through testing. At the moment, Samsung is working on SF2 and SF2P manufacturing lines.
Semiconductor Manufacturing International Corp. (HKEX: 0981, SSE: 688981) finished third by revenue. SMIC posted another quarterly record and ran its plants at a 93.7% utilization rate in the first quarter.
Counterpoint expects demand for advanced-node production and wafer shipments at major foundries to keep growing through 2026. Some orders are also changing hands as TSMC adjusts how it uses its available capacity.
The industry started 2026 with robust sales performance. The pure-play foundry revenue grew by 20% compared to the previous years’ Q4 2025, thereby reaching a full-year growth of 26%. The demand was driven primarily by GPUs, ASICs, and accelerators based on 4nm and 5nm technology.
In Q4 2025, TSMC had a 72% share of the market. The production of its N3 nodes increased due to growing orders for smartphones and PC chips.
Samsung held a 7% market share as it kept working to improve yields on its SF2 process and picked up more SF4 orders for HBM4 logic dies.
Meanwhile on Monday, Taiwan’s government said TSMC will build a third and fourth advanced-packaging factory at Chiayi Science Park in southern Taiwan. The site is becoming one of the company’s main packaging bases.
The first factory there is already producing at scale. The second is close to starting full production. At the groundbreaking event, National Science and Technology Council Minister Wu Cheng-wen said, “Today’s groundbreaking marks the start of the second phase, which will include a third and fourth plant.”
When all four factories are up and running, the park is expected to manufacture goods valued at over NT$300 billion or about $9.35 billion annually. The plan is expected to generate over 9,000 new jobs.
One area where development will take place will be that of the chip-on-wafer-on-substrate process or CoWoS. It allows for processors and memory to be placed very close to one another within a single package. Demand is still running ahead of supply. Nvidia is among the customers asking for more capacity as shipments of AI chips continue to rise.
Counterpoint said, “In 2026, we believe not only advanced nodes but also parts of the 8-inch segment to see improved utilization. Combined with a broad-based increase in wafer pricing, this is likely to further support foundry revenue growth in 2026.”
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