Taiwan Semiconductor Manufacturing Co. reported a 67.9 percent year-on-year increase in June revenue on Monday, sending shares up 1 percent and signaling that demand for advanced AI chips remains strong enough to override typical seasonal weakness ahead of its second-quarter earnings on Thursday.

The June figure of NT$442.68 billion represents a 6.2 percent rise from May, a notable deviation from the historical pattern of month-over-month declines in June over the past four years, according to SemiAnalysis analyst Sravan Kundojjala. For the first half of 2026, total revenue reached NT$2.4 trillion, or $74.99 billion, up 35.6 percent from the same period in 2025.

The second-quarter total exceeded the company's high-end guidance of $40.2 billion, Kundojjala said, describing the numbers as "quite robust." He attributed the strength to a tight demand-supply situation in AI, noting that TSMC is sold out on its N3 process, which is targeted by leading AI GPU and CPU designers this year.

The world's largest contract chipmaker manufactures semiconductors for applications ranging from smartphones to high-performance AI computing systems, with key clients including Nvidia, Apple and Advanced Micro Devices. TSMC commanded a 73 percent share of the global pure-play foundry market in the first quarter of 2026, according to Counterpoint Research data.

Kundojjala estimates TSMC is on track to generate over $40 billion in AI chip revenue in 2026, accounting for close to 25 percent of its total revenue. Separately, Taiwan's National Science and Technology Council Minister Wu Cheng-wen said on Sunday that TSMC plans to add two advanced chip packaging plants in the Chiayi Science Park in southern Taiwan, with the first facility already in mass production and the second expected to begin shortly, according to Reuters.

Investors will now focus on Thursday's second-quarter earnings call for management's outlook on the second half, particularly regarding the sustainability of AI-driven demand and the ramp of new packaging capacity. The results will also test whether the first-half momentum can offset cyclical pressures in the smartphone and PC segments.