On July 17, 2025, Reuters confirmed that TSMC achieved a 60.7% year-over-year jump in second-quarter net profit, hitting T$398.3 billion (~ US$13.53 billion)—smashing expectations thanks to surging demand for AI chips from clients like Nvidia and Apple.

TSMC’s Q2 revenue also rose 38.6%, reaching T$933.8 billion (~ US$31.9 billion), outpacing market forecasts.

The company attributes its earnings boom to skyrocketing demand for its cutting-edge 3nm and 5nm nodes, the backbone of today’s AI-powered data centers. Still, TSMC flags risks from U.S. tariff threats and a strong Taiwan dollar, which could pressure future margins.

TSMC reaffirmed its confidence in sustained AI demand, while its CEO highlighted ongoing capital deployment—part of a global ~$100 billion build-out in manufacturing capacity across Taiwan, Germany, Japan, and the U.S.

Key Highlights

• +60.7% YoY profit growth: Net earnings reach ~$13.5 billion

• Revenue up 38.6%: Hits ~$31.9 billion in Q2

• AI-fueled growth: Demand for 3nm/5nm chips surges

• Global scale-up: $100 billion expansion worldwide

• Macro risks: U.S. tariffs and currency fluctuations pose challenges

Why This Matters

1. AI infrastructure backbone: TSMC’s scorecard underlines the semiconductor industry’s vital role in fueling AI innovation.

2. Global manufacturing shift: Continued investment strengthens chip resilience with multi-country expansions.

3. Geopolitical lens: TSMC operates amid U.S.–China tensions and rising trade protectionism.

4. Investor implications: Strong earnings could bolster sentiment across the broader tech supply chain, from fab tools to downstream platforms.

Source:
Reuters– Full Article