Taiwan Semiconductor Manufacturing Co. is set to report second-quarter earnings later this week, with investors watching for signs that U.S. export controls on advanced chips are starting to restrain sales to China. The results could offer one of the clearest snapshots yet of how Washington’s tightening restrictions are reshaping the global semiconductor market.

At the same time, TSMC is still benefiting from a powerful surge in demand for AI accelerators. The company sits at the center of the chip supply chain for major customers building advanced computing systems, and that demand has helped offset weaker parts of the market.

Analysts say the key question is whether growth in AI-related orders can keep pace if China-facing business slows further. Any commentary from management on supply constraints, customer demand, and the impact of export rules will likely shape investor expectations for the rest of the year.

For the broader tech sector, TSMC’s report may help show whether the AI boom remains strong enough to cushion the industry against geopolitical headwinds. The earnings release is expected to be closely read by investors across semiconductors, cloud computing, and advanced hardware.