US customers now account for over 75% of TSMC revenue

Taiwan Semiconductor Manufacturing Company ↗ 1.08% has become commercially American in all but name. In the first half of 2026, customers headquartered in the United States accounted for 75.64% of the chipmaker's consolidated revenue, according to TSMC's financial statements. Taiwan-based customers contributed just 6.85%, while China accounted for 6.76%, Japan 3.62%, and the Europe, Middle East and Africa region 4.05%.tspasemiconductor.substack

The concentration reflects the dominance of American technology companies in the current wave of artificial intelligence spending. Apple ↘ 0.11%, Nvidia ↘ 0.07%, AMD Advanced Micro Devices, Inc. ↘ 1.63%, and Broadcom ↘ 0.14%, along with hyperscale cloud operators, now drive the overwhelming majority of TSMC's business.

Arizona Turns Profitable

TSMC's Arizona subsidiary reported approximately NT$36.1 billion ($1.2 billion) in profit during the first half of 2026, up roughly 663% from NT$4.7 billion in the same period a year earlier. The plant near Phoenix made more money in the first quarter of 2026 alone — NT$18.8 billion — than in all of 2025.semiwiki+2

After accumulating roughly $1.25 billion in operating losses since construction began in 2021, the Arizona facility has rapidly shifted from a strategic expense to a meaningful contributor. TSMC recognized approximately NT$31.2 billion in investment income from the subsidiary during the first half, representing about 2.44% of the company's overall earnings.reddit+1

AI Demand Driving Growth

The geographic revenue tilt accompanies record financial performance. TSMC reported second-quarter 2026 revenue of NT$1.27 trillion ($39.6 billion), up 36% year on year, with net income surging more than 77%. High-performance computing, the segment encompassing AI chip revenue, reached 66% of quarterly sales.reuters+2

Management raised its full-year 2026 revenue growth forecast from more than 30% to slightly above 40% in U.S.-dollar terms, citing stronger demand for AI accelerators. The company also committed an additional $100 billion to its Arizona expansion, bringing total U.S. investment to $265 billion.semiwiki+2

Strategic Realignment, Not Replacement

The revenue geography does not mean production is shifting wholesale to America. TSMC classifies revenue by customer headquarters, not fabrication location — an Nvidia chip made in Taiwan still counts as U.S. revenue. Taiwan retains TSMC's leading-edge research, advanced packaging infrastructure, and dense supplier ecosystem.tspasemiconductor.substack

Rather, the emerging structure positions Taiwan as the technological core while America becomes the company's most important overseas production base, situated close to customers whose semiconductor requirements grow more strategically sensitive by the quarter.tspasemiconductor.substack