A motorcycle is seen near a building of the Taiwan Semiconductor Manufacturing Company (TSMC), which is a Taiwanese multinational semiconductor contract manufacturing and design company, in Hsinchu, Taiwan, on April 16, 2025.
Daniel Ceng | Anadolu | Getty Images
Taiwan Semiconductor Manufacturing Company on Thursday reported a near 61% year-on-year rise in second-quarter profit, beating estimates, as demand for artificial intelligence chips stays strong.
Here are TSMC’s first-quarter results versus LSEG SmartEstimates:
- Revenue: 933.80 billion new Taiwan dollars ($31.7 billion), vs. NT$931.24 billion expected
- Net income: NT$398.27 billion, vs. NT$377.86 billion
Second-quarter net profit hit a record high, according to Reuters.
TSMC’s net revenue in the June quarter rose 38.65% from a year ago to NT$933.80 billion, also beating estimates.
Advanced chips, with sizes 7-nanometer or smaller, accounted for 74% of TSMC’s total wafer revenue in the quarter. In semiconductor technology, smaller nanometer sizes signify more compact transistor designs, which lead to greater processing power and efficiency.
TSMC, the world’s largest contract chip manufacturer, has benefited from the megatrend towards AI as it gains from producing advanced processors for clients including Nvidia and Apple.
However, the company faces potential headwinds from the trade policy of the U.S. President Donald Trump, who has threatened steep “reciprocal tariffs” on Taiwan.
Taiwan faces 32% tariffs announced in April and is in the midst of trade talks with the U.S., according to local media reports. Trump earlier this month also warned of potential additional tariffs on semiconductors.
U.S. export controls have also restricted TSMC’s business with China, as well that of its key clients such as Nvidia and AMD. However, amid a thawing of trade relations between Beijing and Washington, Nvidia and AMD said earlier this week that they had received government assurances allowing them to ship products to China.