TSMC's leading-edge 2nm node production fully booked, backlog solid through 2027.
Taiwan Semiconductor Manufacturing Co. has started the second half of 2026 with a complex mix of developments: Typhoon Bavi has postponed its June revenue release, S&P Global has upgraded its credit rating, and the company has confirmed that its entire 2-nanometer capacity for the year is fully booked. The stock closed Friday at €383.00 in Europe, posting modest gains on the day but recording a 3.28% loss for the week as investors weighed competing signals.
S&P Global elevated TSMC's long-term credit rating to AA-, citing exceptional balance-sheet strength. Despite capital expenditure running at the top of its previously guided range of $52 billion to $56 billion for the year, the chipmaker continues to generate robust free cash flow. The upgrade reflects confidence that TSMC can fund its aggressive fab expansion in Taiwan, the United States, and Japan without financial strain.
Supply constraints remain severe. TSMC's entire 2-nanometer N2 capacity for 2026 has been allocated, with Apple and Nvidia securing the bulk of initial supply. This demand persists even with the emergence of cheaper 2-nanometer chips from Japanese competitor Rapidus. The company is simultaneously pushing through price increases of 5 to 10 percent on its most advanced process nodes, reflecting sustained imbalance between available capacity and demand for AI compute chips.
Typhoon Bavi struck northeastern Taiwan in late July, closing schools and factories across the island and bringing heavy rainfall to Hsinchu and Miaoli, where TSMC's primary facilities are located. The company delayed its June revenue release by several days to mid-July. Analysts still project a record monthly figure exceeding NT$400 billion, underscoring quarter strength. CEO C.C. Wei and management have expressed confidence in the second quarter and full-year outlook.
Despite the weekly decline, momentum remains positive longer term. The stock trades 8.92 percent below its 52-week high of €420.50 reached in early July but remains well above the 200-day moving average of €294.14. Year-to-date gains stand at 40.29 percent, with 12-month returns near 95 percent. The 14-day relative strength index of 50.7 suggests neutral sentiment, indicating investors are awaiting concrete data.
Market focus now shifts to the second-quarter earnings report due in July, which carries greater weight than the delayed June figures. Analysts forecast revenue of approximately $40 billion, a 33 percent increase year-over-year. Critical areas include CoWoS advanced packaging capacity—reportedly booked through 2026 and partly into 2027—as well as pricing power on nodes from 7 nanometers down. The third-quarter forecast and any adjustment to the full-year revenue growth guidance of above 30 percent in U.S. dollars will be decisive for near-term share price direction.