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TSMC Revenue Soars 37% in January 2026, Fueled by AI Demand

Taiwan Semiconductor Manufacturing Company (TSMC) has reported a powerful start to 2026, with January net revenue reaching NT$401.26 billion, marking a 36.8% increase from the same month last year. Chairman and CEO C.C. Wei forecasts sales growth of nearly 30% for the full year, significantly outpacing the broader foundry market, driven by the ongoing "AI megatrend." The company plans a substantial increase in capital expenditure to meet client demand, with CFO Wendell Huang projecting a strong first quarter. Huang also expects the gross margin to improve in Q1, citing better cost controls and higher capacity utilization.

Key Points: TSMC January 2026 Revenue Jumps 37% to $12.71 Billion

  • January revenue hit NT$401.26B ($12.71B)
  • 36.8% annual growth driven by AI demand
  • CEO forecasts ~30% sales growth for 2026
  • Q1 gross margin projected to rise to 63-65%
2 min read

TSMC net revenue for January 2026 stood at USD 12.71 billion

TSMC reports January 2026 revenue of $12.71B, a 37% annual surge. CEO forecasts 30% yearly growth driven by AI megatrend and expanded capex.

"I tell you the truth, I don't know, - C.C. Wei"

Taipei, February 10

Taiwan Semiconductor Manufacturing Co. reported a significant surge in its financial performance for the start of 2026, with January revenues reaching NT$401.26 billion in net revenue, an increase of 19.8 per cent from December 2025 and an increase of 36.8 per cent from January 2025.

The semiconductor giant detailed these figures in its latest financial disclosure. The net revenue for the preceding month, December 2025, stood at NT$335 billion (approx. USD 10.61 billion), marking a substantial month-on-month growth of nearly 20 per cent.

Earlier in January, TSMC projected its sales to grow by nearly 30 per cent in 2026, driven by robust demand for artificial intelligence (AI) and a recovery in non-AI applications. The company also planned to expand its capital expenditure by as much as 37 per cent to accommodate client requirements, according to a report by Focus Taiwan.

During an investor conference, TSMC Chairman and CEO C.C. Wei forecasted sales growth of almost 30 per cent in 2026 in U.S. dollar terms. This projection significantly exceeded the 14 per cent growth anticipated for the broader global pure play wafer foundry market.

Wei noted that while the market is currently experiencing an "AI megatrend," the long-term duration of this cycle remained uncertain. "I tell you the truth, I don't know," Wei said when asked if the semiconductor market could remain strong for several consecutive years.

TSMC Chief Financial Officer Wendell Huang stated that the company expected the first-quarter sales to range between USD 34.6 billion and USD 35.8 billion. The midpoint of this range represented a 4 per cent increase from the previous quarter. Huang also indicated that the gross margin was expected to rise to between 63 per cent and 65 per cent in the first quarter, up from 62.3 per cent in the fourth quarter, citing improved cost controls and higher capacity utilisation.

For the full year of 2025, TSMC reported a gross margin of 59.9 per cent, which was an increase of 3.8 percentage points from the previous year. Huang said that over the longer term, the company expected "to maintain its gross margin above 56 per cent."

The company's capital expenditure in the fourth quarter of last year reached NT$3.81 trillion (USD 121 billion) sales in 2025, and is expected to exceed the 10 per cent threshold in 2026.

- ANI

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Reader Comments

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Priya S
The gross margin of 63-65% is what's truly mind-blowing. That's pure profitability. While it's great for TSMC shareholders, I hope this tech boom eventually leads to more affordable electronics for consumers in markets like India. The cost of phones and laptops keeps rising!
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Rohit P
"I tell you the truth, I don't know" – respect to the CEO for such honesty about the AI cycle's uncertainty. It's a refreshing change from the usual corporate hype. This boom is creating jobs globally, and I hope Indian engineers and techies are getting a big piece of the action. 🇮🇳
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Sarah B
The capital expenditure numbers are eye-watering. USD 121 billion in sales and planning to expand capex by 37%? This level of investment is what separates the leaders from the followers. It's a sobering reminder of the scale needed for India's semiconductor mission to succeed.
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Vikram M
While the growth is impressive, let's not forget the geopolitical elephant in the room. TSMC's dominance makes the global tech supply chain very vulnerable. India needs to build strategic partnerships and its own capacity, not just for economic reasons but for national security too. Jai Hind.
K
Kavya N
As someone working in tech, this AI-driven demand is real. Every company wants to integrate AI, and it all starts with these chips. TSMC's performance is a direct indicator of the industry's health. Hoping the boom means more opportunities for our tech hubs in Bangalore, Hyderabad, and Pune!

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