According to aol.ca, Taiwan Semiconductor Manufacturing (TSMC) reported second-quarter revenue of $40.2 billion, a 33.7% year-on-year increase, while ASML delivered 86 new lithography units in the same period — up from 67 a year earlier.
TSMC’s Dominance and Expansion
TSMC holds an estimated 73% share of the global foundry market, up from 69% in Q4 2024. The company fabricated more than 12,600 different products in 2025, leveraging 305 distinct process technologies. Its latest node — the 2-nanometer process — generated 3% of total revenue in Q2 2026, its first full quarter of commercial contribution. In contrast, 3-nm and 5-nm technologies together accounted for 63% of revenue that quarter (30% and 33%, respectively).
The company also announced a $100 billion expansion of its Arizona fab, designed to support advanced packaging and its 2-nm process. Net profit margin for Q2 2026 stood at 55.6%. Over the past five years, TSMC’s net income rose 251% and revenue increased 165%.
ASML’s EUV Leadership and Demand Surge
ASML — the Dutch supplier of photolithography systems — sold 86 new and 5 used lithography machines in Q2 2026, compared to 67 new and 12 used units in Q2 2025. Revenue reached €9.32 billion ($10.69 billion), up 11% year-on-year. Net income totaled €2.91 billion ($3.16 billion), rising 5.8%, with gross margins at 54%.
ASML’s extreme ultraviolet (EUV) lithography tools — which use mirrors instead of lenses to achieve nanoscale precision — are irreplaceable for manufacturing chips at the 3-nm, 2-nm, and future nodes. CEO Christophe Fouquet stated:
“Ongoing AI-related investments and continued progress in AI technologies are driving demand for advanced logic and memory chips, further strengthening the semiconductor industry’s growth outlook. Our customers, in turn, continue to accelerate their capacity expansion plans.” — Christophe Fouquet, CEO of ASML
Comparative Performance and Strategic Positioning
Both companies significantly outperformed the Nasdaq Composite over the past five years. ASML posted gains exceeding 90% in both net income and revenue during that span. TSMC’s stock performance mirrored its financial growth, underpinned by its central role in fabricating AI accelerators for firms including Nvidia, AMD, and Apple. According to the report, TSMC’s 2-nm process entered revenue generation in the most recent quarter — a milestone tied directly to AI chip demand.
While ASML enables next-generation chipmaking, its business model is capital equipment–driven and subject to multi-year customer lead times and geopolitical constraints on tool exports. TSMC, by contrast, operates high-utilization fabs across Taiwan, Arizona, and Japan, with direct exposure to end-market AI hardware cycles. The source notes that TSMC’s Q2 2026 results reflect not only volume growth but also a structural shift toward higher-margin, leading-edge nodes — a trend expected to persist through 2027.
Source: aol.ca
Compiled from international media by the SCI.AI editorial team.
