Taiwan Semiconductor Manufacturing (TSM) is the leading contract manufacturer in the entire technology ecosystem. Its $2.1 trillion market cap should speak for itself, as should the notion that its semiconductors and integrated circuits are used in just about any electronics you can name. This demand is led by tech giants like NVIDIA and Apple. And TSM’s global diversification strategy appears to be paying off with rising profits as it has continued to expand its manufacturing outside of Taiwan.
Taiwan’s proximity and ongoing “China issues” make Taiwan Semiconductor a necessary yet complicated component within the global supply chain. The move to secure the future supply chain for AI and everything else in electronics is proving to be a success despite how costly its overseas expansion plans have been.
The latest SEC filing from Taiwan Semiconductor showed that its Q2-2026 revenues of NT$1.27 trillion was up over 36% from NT$933.8 billion in Q2-2026. And its Q2-2026 net income of NT$706.8 billion was up 78% from Q2-2025.
TSMC Arizona generated 36 billion New Taiwan dollars in net profit during the first half of 2026. This was up more than 100% than its full net profit for all of 2025.
TSM’s Japanese joint venture also swung to a net profit of NT$1.68 billion in the first half of 2026, after a full 2025 loss of NT$9.77 billion. TSMC Nanjing (China) also remained steadily profitable during the first half of 2026.
TSMC’s cash position rose to NT$3.134 trillion in the first half of 2026, up 33% from the NT$2.767 trillion in the first half of 2025.
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The latest news is on the heels of the prior week’s report that strong demand for AI also led to Taiwan’s overall economy showing growth of 8.7% in 2025. The nation’s GDP is now expected to grow 11% in 2026, up from a prior forecast of 9.6% GDP growth issued in May.
TSM’s ADRs closed up 1.1% at $430.97 in U.S. trading on Monday, and shares were indicated down over 2% at $419.50 in Tuesday’s trading. Its 52-week range is $223.70 – $479.00.
With the S&P 500 up 13% YTD and up 20% from a year ago, TSM’s ADRs have posted a gain of 38% YD and a gain of 73% over the last year. TSMC’s ADRs have also risen 360% in three years risen more than 1,300% in the last decade.
Wall Street looks incrementally positive after TSMC’s filing as well. So far, BofA reiterated its Buy rating with a $590 price objective after the filing. BofA also values TSM at 21.6-times 2026 estimated earnings, followed by 15.54-times 2027 and 13.1-times 2028.
Be advised that the iShares MSCI Taiwan ETF (EWT) is heavily dominated by TSM with a 22.5% weighting, nearly 4-times the weighting and market cap of MediaTek and nearly 6-times the next two largest components (Delta Electronics and Hon Hai Precision).
