Taipei [Taiwan], July 16 (ANI): Taiwanese chip giant TSMC has forecast a robust sales growth for 2026 on the back of the continued artificial intelligence (AI) boom.

The chip maker, which is the world's largest foundry, raised its 2026 sales growth forecast to more than 40 per cent in US dollar terms, according to a report by Focus Taiwan.

Surging demand for AI tools globally has kept the momentum high for chip manufacturers. This is the second time the company has upgraded its forecast this year, even as its chairman CC Wei underlined the challenges presented to the consumer electronics market due to rising prices of memory chips, the report added. In April, the chip maker had forecast that its sales growth would be more than 30 per cent in 2026.

Despite the challenges before the industry, Wei struck a positive note, saying that TSMC's clients and clients' clients have forecast a positive outlook for the year, according to the report.

To meet the surging demand for AI applications, the company has further ramped up the budget for capital expenditure to USD 60-64 billion from its earlier budget of USD 52-56 billion. The move is in line with other AI players who have committed hundreds of billions of dollars for the AI buildout.

For the second quarter, the capex has jumped to USD 15.7 billion, rising around 41 per cent from the first quarter and 63 per cent from the same period last year, the report mentioned.

The chipmaker announced its second-quarter earnings today. The company reported a revenue increase of 36 per cent with net profit rising a robust 77.4 per cent. In US dollar terms, the revenue increased by 33.7 per cent YoY to USD 40.2 billion.

'Our business in the second quarter was supported by strong demand for our leading-edge process technologies,' said Wendell Huang, Senior VP and Chief Financial Officer of TSMC.

'Moving into third quarter 2026, we expect our business to be supported by continued strong demand for our leading-edge process technologies, including the steep ramp-up of our 2-nanometer technology,' Huang added. (ANI)