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    TSMC (Taiwan Semiconductor Manufacturing Company)

    Also known as Taiwan Semiconductor Manufacturing Company, Taiwan Semiconductor Manufacturing Co., Ltd., TSM, 2330

    TSMC is a Taiwanese company that manufactures chips designed by its customers, a model it pioneered in 1987.[1] It held an estimated 72.5% of top-10 foundry revenue in the second quarter of 2026,[2] and its revenue for the first nine months of 2026 was up 41.1% from a year earlier.[3]

    Editor reviewedUpdated SemiconductorsArtificial intelligenceBig Tech
    Key facts

    Taiwan Semiconductor Manufacturing Company (TSMC) manufactures chips for other companies rather than selling chips of its own design. Morris Chang founded it in 1987, and it pioneered this “pure-play foundry” business model.[1] TrendForce estimated that TSMC took 72.5% of top-10 foundry revenue in the second quarter of 2026.[2]

    Company overview

    TSMC is headquartered in Hsinchu Science Park, Taiwan.[4] Its shares trade on the Taiwan Stock Exchange under ticker 2330, and its American Depositary Shares trade on the New York Stock Exchange as TSM.[5] As of October 2026, C.C. Wei is Chairman and Chief Executive Officer.[6] The company employed more than 90,000 people worldwide in 2025.[7]

    In 2025 TSMC made 12,682 products using 305 distinct process technologies for 534 customers.[8] Its managed fabs had annual capacity of more than 17 million 12-inch equivalent wafers that year, and it shipped 15.0 million.[9]

    Process technology

    TSMC’s 2nm (N2) process is its first to use nanosheet (gate-all-around) transistors and entered volume production in the fourth quarter of 2025.[10][11] The improved N2P version is scheduled for volume production in the second half of 2026.[10] The next technology, A16, adds a backside power rail.[12]

    TSMC began using extreme ultraviolet (EUV) lithography in production in 2019, when it said its N7+ process was the industry’s first commercially available EUV technology delivering customer products in high volume.[13] asml is the only maker of EUV systems.[14]

    Advanced nodes make up most of TSMC’s revenue. In the second quarter of 2026, 7nm and more advanced technologies accounted for 77% of wafer revenue: 3nm was 30%, 5nm was 33% and 2nm was 3%.[15]

    TSMC also packages chips. Its CoWoS technology combined more than three reticles’ worth of silicon with eight high-bandwidth memory stacks for NVIDIA’s Blackwell GPU, an example of the chiplet approach.[16] TSMC forecast in May 2026 that CoWoS capacity would grow at a compound annual rate of more than 80% from 2022 to 2027.[17] Monthly CoWoS capacity is reported to reach 120,000 to 140,000 wafers in 2026, with partner packaging firms adding 50,000 to 60,000.[18] The computing hardware tracker follows these process and packaging milestones.

    Financial results

    TSMC’s 2025 consolidated revenue was NT$3,809.05 billion (US$122.42 billion), and its net income was NT$1,717.88 billion (US$55.21 billion).[19] In the second quarter of 2026 it reported revenue of NT$1,270.38 billion (US$40.20 billion). Net income rose 77.4% from a year earlier to NT$706.56 billion, and gross margin was 67.7%.[20]

    In July 2026 the company guided third-quarter revenue of US$44.6 billion to US$45.8 billion, with a gross margin of 65% to 67%.[21] Its monthly reports showed revenue of NT$467.58 billion in July, NT$514.81 billion in August and NT$511.86 billion in September.[22] That puts third-quarter revenue at about NT$1.49 trillion, up about 51% from a year earlier.[23] Full quarterly results were scheduled for October 15, 2026.[23] Revenue for January through September totaled NT$3,898.73 billion, up 41.1% from a year earlier.[3] September revenue was 0.6% lower than August but 54.6% higher than a year earlier.[22]

    Competition

    TrendForce ranked Samsung Electronics’ foundry business second in the second quarter of 2026, with an estimated 5.9% share against TSMC’s 72.5%.[2] TrendForce put Samsung Foundry’s quarterly revenue at US$3.26 billion, compared with nearly US$40.2 billion for TSMC.[24][2] Samsung also began mass production of first-generation 2nm products in the fourth quarter of 2025.[25]

    Global footprint

    TSMC’s first fab in Arizona began 4nm volume production in the fourth quarter of 2024. A specialty-technology fab in Kumamoto, Japan began volume production at the end of 2024. Construction of a specialty fab in Dresden, Germany began in 2024.[26] In March 2025 TSMC said it expected its total US investment to reach US$165 billion, covering three more fabs, two advanced packaging facilities and an R&D center.[27]

    Questions readers ask

    Does TSMC design its own chips?

    No. TSMC pioneered the pure-play foundry model, in which it manufactures chips designed by its customers. In 2025 it made 12,682 products for 534 customers.[1][8]

    How large is TSMC's share of the foundry market?

    TrendForce estimated TSMC's share of top-10 foundry revenue at 72.5% in the second quarter of 2026, with Samsung Foundry second at 5.9%.[2]

    When did TSMC start making 2nm chips?

    TSMC's 2nm (N2) process entered volume production in the fourth quarter of 2025. It accounted for 3% of wafer revenue in the second quarter of 2026.[10][15]

    Does TSMC manufacture outside Taiwan?

    Yes. Its first Arizona fab began 4nm volume production in late 2024, a Kumamoto, Japan fab began volume production at the end of 2024, and a fab in Dresden, Germany has been under construction since 2024.[26]

    Sources

    Each numbered claim is a statement we checked against the sources listed with it. Status shows how well established it is.

    1. [1]

      TSMC was established in 1987 by Morris Chang and pioneered the pure-play foundry business model. confirmedas of 2026-10-10

    2. [2]

      TrendForce estimated that TSMC held 72.5% of top-10 foundry revenue in 2Q26, with Samsung Foundry second at 5.9%. reportedas of 2026-06-30

    3. [3]

      TSMC's revenue for January through September 2026 totaled NT$3,898.73 billion, up 41.1% from the same period of 2025. confirmedas of 2026-10-08

    4. [4]

      TSMC is headquartered in Hsinchu Science Park, Taiwan. confirmedas of 2026-10-10

    5. [5]

      TSMC is listed on the Taiwan Stock Exchange under ticker 2330, and its American Depositary Shares trade on the New York Stock Exchange as TSM. confirmedas of 2026-10-10

    6. [6]

      As of October 2026, C.C. Wei is TSMC's Chairman and Chief Executive Officer. confirmedas of 2026-10-10

      • Executives · TSMC · Dr. C.C. Wei entry (retrieved 2026-10-10)
    7. [7]

      TSMC employed more than 90,000 people worldwide in 2025. confirmedas of 2025-12-31

    8. [8]

      In 2025 TSMC manufactured 12,682 products using 305 distinct process technologies for 534 customers. confirmedas of 2025-12-31

    9. [9]

      Annual capacity of TSMC-managed manufacturing facilities exceeded 17 million 12-inch equivalent wafers in 2025, and wafer shipments totaled 15.0 million 12-inch equivalent wafers. confirmedas of 2025-12-31

    10. [10]

      TSMC's 2nm (N2) process, its first to use nanosheet transistors, entered volume production in the fourth quarter of 2025; N2P volume production is scheduled for the second half of 2026. confirmedas of 2026-10-10

    11. [11]

      N2 is TSMC's first process to use nanosheet (gate-all-around) transistors. confirmedas of 2026-10-10

    12. [12]

      TSMC's A16 technology combines nanosheet transistors with a backside power rail. confirmedas of 2026-10-10

    13. [13]

      TSMC said in October 2019 that its N7+ process, the industry's first commercially available EUV lithography technology, was delivering customer products in high volume after starting volume production in the second quarter of 2019. confirmedas of 2019-10-07

    14. [14]

      ASML is the only manufacturer of EUV lithography systems; ASML itself describes EUV lithography as unique to ASML. confirmedas of 2026-10-10

    15. [15]

      In 2Q26, 7-nanometer and more advanced technologies accounted for 77% of TSMC's wafer revenue, with 2nm at 3%, 3nm at 30% and 5nm at 33%. confirmedas of 2026-06-30

    16. [16]

      As of 2024, NVIDIA's Blackwell GPU used TSMC's CoWoS packaging to combine more than three reticles' worth of silicon with eight HBM memory stacks. confirmedas of 2024-04-30

    17. [17]

      TSMC forecast in May 2026 that its CoWoS capacity will grow at a compound annual rate of more than 80% from 2022 to 2027. reportedas of 2026-06-15· forecast

    18. [18]

      TSMC's monthly CoWoS packaging capacity is reported to reach 120,000-140,000 wafers in 2026, with partner packaging firms adding 50,000-60,000. reportedas of 2026-06-15

    19. [19]

      TSMC's 2025 consolidated revenue was NT$3,809.05 billion (US$122.42 billion) and net income was NT$1,717.88 billion (US$55.21 billion). confirmedas of 2025-12-31

    20. [20]

      In the second quarter of 2026 TSMC reported revenue of NT$1,270.38 billion (US$40.20 billion), net income of NT$706.56 billion, up 77.4% year over year, and a gross margin of 67.7%. confirmedas of 2026-06-30

    21. [21]

      In July 2026 TSMC guided third-quarter 2026 revenue of US$44.6 billion to US$45.8 billion and a gross margin of 65% to 67%. confirmedas of 2026-07-16· forecast

    22. [22]

      TSMC reported unaudited monthly revenue of NT$467.58 billion for July, NT$514.81 billion for August and NT$511.86 billion for September 2026; September was up 54.6% from a year earlier. confirmedas of 2026-10-08

    23. [23]

      TSMC's third-quarter 2026 revenue, based on its monthly reports, was about NT$1.49 trillion, up about 51% from a year earlier; full quarterly results were scheduled for October 15, 2026. confirmedas of 2026-10-08

    24. [24]

      TrendForce estimated Samsung Foundry's 2Q26 revenue at US$3.26 billion, second among foundries with a 5.9% share. reportedas of 2026-06-30

    25. [25]

      Samsung's foundry business began mass production of first-generation 2nm products in the fourth quarter of 2025 and planned to ramp second-generation 2nm production in 2026. confirmedas of 2025-12-31

    26. [26]

      TSMC Arizona's first fab began 4nm volume production in 4Q24, a specialty fab in Kumamoto, Japan began volume production at the end of 2024, and construction of a specialty fab in Dresden, Germany began in 2024. confirmedas of 2025-12-31

    27. [27]

      In March 2025 TSMC said it expected its total US investment to reach US$165 billion, including three new fabs, two advanced packaging facilities and an R&D center. confirmedas of 2025-03-04

    28. [28]

      TSMC's A16 process combines nanosheet transistors with a backside power rail to improve logic density and performance. confirmedas of 2026-10-10

    Revision history (2)
    1. Page created.
    2. Refresh: added packaging capacity and links to the computing-hardware field pages; set review for the October 15 third-quarter results.

    Created Oct 10, 2026. Last reviewed by an editor on Oct 10, 2026. Next scheduled review: Oct 16, 2026.

    Cite this page

    "TSMC (Taiwan Semiconductor Manufacturing Company)." ContentLora, updated Oct 10, 2026. https://contentlora.com/wiki/tsmc

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    Connections
    Samsung Electronics Competitor (foundry)Extreme ultraviolet… EUV process technologyASML EUV equipment supplierGate-all-around (GA… Transistor architecture (…Backside power deli… Backside power (A16)Chiplets and advanc… Advanced packaging (CoWoS)
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