The foundry industry hit a record $54.5B in 2Q26 (+28% y/y, 10th straight growth quarter) with almost none of it coming from new capacity. Supply rose just 6% y/y, so pricing and mix did the work, N2 and advanced packaging at the leading edge, and the first broad mature-node price increases since the COVID cycle at the trailing edge. Demand keeps tilting toward AI. HPC hit a record 66% of TSMC revenue while smartphone dropped to 22%. Utilization jumped to 90% from 85% as the recovery finally reached non-China mature fabs. TSMC still took 90% of the $30.1B gross profit pool at 73.8% revenue share, but the story underneath is ex-TSMC growth doubling to +14% in 2026 from +3% in 2025 on the pricing turn. 3Q26E accelerates to $61.4B (+34% y/y), the fastest of this cycle. (1/6)🧵