TSMC (TSM/2330 TT) provides guidance (TWD): Q2 Revenue 39-40.2bln (exp. 38.1bln), Gross Margin 65.5-67.5% (exp. 64.1%), Op. Margin 56.5-58.5% (exp. 55.3%)

FY Outlook:

• Raises FY26 Revenue above 30% (prev. saw "close" to 30%). (in USD terms).
• Adjusts FY26 Capex to upper end of prior forecast 52-56bln (prev. saw 52-56bln).

Demand:

• AI is so strong.
• Demand is very robust and continues to increase. 
• To meet strong AI demand, are stepping up Capex to increase N3 capacity.
• Demand for chops will continue to be very fundamental.
• Customers provide us with very strong signals.
• Strategy to continue to optimise our capacity.
• High level of of customer interest for A14.
• Customers give a positive outlook.
• Both Intel (INTC) and Tesla (TSLA) are our customers, and competitors; Intel is a formidable competitor.
• Very confident in our tech position.

Production:

• Plans to wind down 6 inch Fab.
• Increasing Capex to boost 3NM capacity, to meet AI demand.
• Takes 2-3 years to build a new Fab.

Middle East:

• Too early to quantify Middle East war impact on profitability .
• Have safety stock in hand for helium and hydrogen.
• Do not expect a near term impact to operations from energy supplies.