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 Pictures
Taiwan Semiconductor Manufacturing Firm on Thursday reported a close to 61% year-on-year rise in second-quarter revenue, hitting a file excessive and beating estimates, as demand for synthetic intelligence chips stayed sturdy.
The world’s largest contract chip producer forecast third-quarter income between $31.8 billion and $33.0 billion — a 38% year-over-year enhance and eight% greater 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 progress in synthetic intelligence and demand for its most superior applied sciences.
Listed below 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 revenue: NT$398.27 billion, vs. NT$377.86 billion
TSMC’s web income within the June quarter rose 38.65% from a 12 months in the past to NT$933.80 billion, additionally beating estimates.
The corporate’s shares had been up almost 6% at 2:25 a.m. ET on buying and selling platform Robinhood.
TSMC’s high-performance computing division, which encompasses synthetic intelligence and 5G functions, drove second quarter gross sales, contributing 60% of income. That share of HPC income was up from 52% in for a similar interval final 12 months.
TSMC has benefited from the megatrend in the direction of synthetic intelligence because it manufactures superior AI processors for shoppers together with Nvidia and Apple.
“The first driver of progress 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 higher processing energy and effectivity. TSMC mentioned superior chips, with sizes 7-nanometer or smaller, accounted for 74% of TSMC’s complete wafer income within the quarter.
“Surging demand from the AI growth is extremely sustainable within the close to time period, with AI nonetheless in its very starting levels and continues to develop throughout industries,” Wang added.
Nevertheless, 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 keeping with native media studies. Trump earlier this month additionally warned of potential extra tariffs on semiconductors.
“Trying into second half of 2025 now we have not seen any change in our clients habits thus far. Nevertheless, we perceive there are uncertainties and threat from the potential influence of tariff insurance policies,” Wei mentioned on Thursday.
U.S. export controls have additionally restricted TSMC’s enterprise with China, as effectively that of its key shoppers resembling Nvidia and AMD. Nevertheless, amid a thawing of commerce relations between Beijing and Washington, Nvidia and AMD mentioned earlier this week that that they had acquired authorities assurances permitting them to ship merchandise to China.
Different headwinds dealing with TSMC within the second half of the 12 months embody appreciation of the Taiwan greenback and potential order cuts from smartphone and PC shoppers attributable to world macro situations, mentioned Sravan Kundojjala, an analyst at SemiAnalysis specializing in world foundries.
