TSMC’s capacity squeeze is contractual, not a bidding war!

Taiwan Semiconductor’s (TSMC) second-quarter results reinforced the central argument behind my recent article, “The $30,000 Wafer: Why TSMC Never Has to Cut Its Price.” Revenue reached $40.2 billion, rising 33.7% year over year, while gross margin expanded to 67.7% and operating margin reached 60.3%. Advanced technologies at 7nm and below generated 77% of total wafer revenue, including a 3% contribution from 2nm during its initial ramp. TSMC also raised its 2026 capital-spending range to $60-$64