Taipei: Taiwan Semiconductor Manufacturing Company (TSMC) announced on Monday that its revenue experienced a significant 36% increase year-on-year in the first half of 2026. This surge is attributed to the ongoing demand for advanced chips utilized in artificial intelligence systems.

According to Anadolu Agency, TSMC, which holds the title of the world's largest contract chipmaker, reported generating approximately 2.4 trillion New Taiwan dollars (equivalent to $75 billion) in revenue during the January to June period. This figure marks a substantial rise from the $55.2 billion recorded during the same timeframe in the previous year.

The company revealed that its June revenue totaled about $13.8 billion, reflecting a 68% increase from the previous year and a 6% rise from May. This robust monthly performance contributed to the second-quarter revenue reaching approximately $39.6 billion, representing a 36% increase compared to the same quarter last year.

TSMC is renowned for manufacturing processors for major tech companies such as Nvidia and Apple, positioning it as a crucial indicator of global investment in AI servers and data centers. The company stated that the demand for its most advanced manufacturing technologies and chip-packaging capacity remains strong as cloud computing companies and chip designers continue to expand their AI infrastructure.

C.C. Wei, TSMC's Chief Executive Officer, mentioned in June that the company may face challenges in fully meeting customer demand for several years, despite efforts to increase manufacturing capacity. TSMC has allocated nearly a record $56 billion for capital expenditure this year to expand its advanced chip manufacturing and packaging facilities in Taiwan and the United States.

The company is set to release its full second-quarter earnings and provide an updated annual revenue and investment outlook on Thursday.