TAIPEI (Taiwan News) — TSMC posted a record NT$398.27 billion (US$13.51 billion) in net profit for Q2 on Thursday, fueled by booming demand across AI and high-performance computing markets.

The world’s largest contract chipmaker posted NT$933.79 billion in Q2 revenue, beating its forecast and marking an 11.3% increase from the previous quarter, per CNA. Gross margin came in at 58.6%, in line with the company’s forecast despite currency headwinds and overseas fab costs.

Strong capacity utilization rates and improved cost structures helped TSMC absorb external pressures, with CEO C.C. Wei (魏哲家) noting broad-based growth across all key platforms, including high-performance computing, Internet of Things, and mobile devices.

Advanced process nodes continued to dominate TSMC’s portfolio, with 3 nm accounting for 24% of Q2 revenue, 5 nm for 36%, and 7 nm for 14%. Altogether, advanced nodes made up 74% of the company’s total revenue.

For the first half of this year, TSMC’s revenue surged to NT$1.77 trillion, up 40% year-on-year. Net profit was NT$759.84 billion, a 60.5% increase, while gross margin rose to 58.7%, up 5.6 percentage points from a year earlier.