A motorbike is seen close to a constructing of the Taiwan Semiconductor Manufacturing Firm (TSMC), which is a Taiwanese multinational semiconductor contract manufacturing and design firm, in Hsinchu, Taiwan, on April 16, 2025.
Daniel Ceng | Anadolu | Getty Photos
Taiwan Semiconductor Manufacturing Firm on Thursday reported a close to 61% year-on-year rise in second-quarter revenue, hitting a document excessive and beating estimates, as demand for synthetic intelligence chips stayed robust.
The world’s largest contract chip producer forecast third-quarter income between $31.8 billion and $33.0 billion — a 38% year-over-year improve and eight% increased from the prior quarter on the midpoint.
TSMC CEO C.C. Wei mentioned within the earnings name that the corporate expects its full-year 2025 income to rise by round 30% in U.S. greenback phrases, supported by development in synthetic intelligence and demand for its most superior applied sciences.
Listed here are the corporate’s outcomes versus LSEG SmartEstimates:
- Income: 933.80 billion new Taiwan {dollars} ($31.7 billion), vs. NT$931.24 billion anticipated
- Web earnings: NT$398.27 billion, vs. NT$377.86 billion
TSMC’s internet income within the June quarter rose 38.65% from a yr in the past to NT$933.80 billion, additionally beating estimates.
The corporate’s shares have been up over 4% at 4:30 a.m. ET on buying and selling platform Robinhood.
TSMC’s high-performance computing division, which encompasses synthetic intelligence and 5G purposes, drove second quarter gross sales, contributing 60% of income. That share of HPC income was up from 52% in for a similar interval final yr.
TSMC has benefited from the artificial-intelligence megatrend because it manufactures superior AI processors for purchasers together with Nvidia and Apple.
“The first driver of development for TSMC has been the strong demand for AI associated chips, significantly for the vanguard nodes under 7nm,” mentioned Brady Wang, affiliate director at Counterpoint Analysis.
In semiconductor expertise, smaller nanometer sizes signify extra compact transistor designs, which result in better processing energy and effectivity. TSMC mentioned superior chips, with sizes 7-nanometer or smaller, accounted for 74% of TSMC’s whole wafer income within the quarter.
“Surging demand from the AI growth is very sustainable within the close to time period, with AI nonetheless in its very starting phases and continues to develop throughout industries,” Wang added.
Nonetheless, the corporate faces potential headwinds from the commerce coverage of the U.S. President Donald Trump, who has threatened steep “reciprocal tariffs” on Taiwan.
Taiwan faces 32% tariffs introduced in April and is within the midst of commerce talks with the U.S., in response to native media studies. Trump earlier this month additionally warned of potential further tariffs on semiconductors.
“Wanting into second half of 2025 now we have not seen any change in our prospects conduct up to now. Nonetheless, we perceive there are uncertainties and danger from the potential impression of tariff insurance policies,” Wei mentioned on Thursday.
U.S. export controls have additionally restricted TSMC’s enterprise with China, as properly that of its key purchasers corresponding to Nvidia and AMD. Nonetheless, amid a thawing of commerce relations between Beijing and Washington, Nvidia and AMD mentioned earlier this week that that they had obtained authorities assurances permitting them to ship merchandise to China.
Different headwinds dealing with TSMC within the second half of the yr embrace appreciation of the Taiwan greenback and potential order cuts from smartphone and PC purchasers as a consequence of international macro situations, mentioned Sravan Kundojjala, an analyst at SemiAnalysis specializing in international foundries.
