Expected to remain the primary growth driver, supported by robust demand for AI accelerators and a resurgence in CPU demand driven by agentic AI.

Consumer and price-sensitive end markets remain challenged due to rising component prices and macroeconomic uncertainties.

IoT grew 4% sequentially in Q2 2026 to about 5% of revenue, a modest pace versus the AI/HPC-driven platforms. Management expects continued but measured growth: TSMC is expanding mature-node and specialty capacity for higher value-added segments (e.g., power management ICs, CMOS image sensors via JASM in Japan) while noting that commodity demand outside these specialty areas is not strong; longer term, management sees the emerging AI industry extending into edge devices, robotics, and IoT-adjacent applications.

Showing signs of recovery with strong sequential growth.

DCE (Digital Consumer Electronics) remains TSMC's smallest platform at ~1% of Q2 2026 revenue, growing 5% sequentially. Near-term outlook is subdued: management notes that outside AI/HPC, consumer-oriented and commodity mature-node demand is not strong, with TSMC prioritizing higher value-added specialty segments (e.g., power management ICs and CMOS image sensors) rather than commodity consumer capacity.