TSMC’s second-quarter profit soars nearly 61%, beating estimates as AI chip demand stays strong
On April 16, 2025, a motorcycle is seen near a building of Taiwan semiconductor production company (TSMC), a Taiwan semiconductor contract production and design company in Taiwan, Taiwan.
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Taiwan semiconductor production company on Thursday is close to 61% As long as the demand for artificial intelligence chips remains strong, the annual increase in the second quarter profit is to overcome forecasts.
Here are the first quarter results of TSMC against LSEG Smartestimates:
- Revenue: 933.80 billion new Taiwan Dollar ($ 31.7 billion), NT 931.24 billion is expected
- Net Income: NT 398.27 billion dollars, NT 377.86 billion $ $
According to Reuters, the second quarter net profit reached a record level.
The Net income of the TSMC in June quarter increased by 38.65% to $ 933.80 billion nt compared to the previous year and defeated predictions.
TSMC, the world’s largest contract chip manufacturer, has benefited from Megatrend for artificial intelligence because it produces advanced AI processors for customers such as NVIDIA and Apple.
“The primary driving force of the growth of TSMC, especially for the leading edge nodes below 7nm, was a solid demand for AI chips,” Brady Wang, the co -director of the counterpair Research. He said.
In semiconductor technology, smaller nanometer sizes show more compact transistor designs that lead to more processing power and efficiency. TSMC, 7 nanometers or smaller sizes of developed chips, TSMC’nin 74% of the total wafer revenue in the quarter, he said.
“The demand from the AI explosion is quite sustainable in the near term, AI is still in its initial stages and continues to expand between industries.”
However, the company faces potential winds from US President Donald Trump’s trade policy, threatening the “mutual tariffs” in Taiwan.
Taiwan faces 32% tariffs announced in April and is in the midst of trade talks with the US. Local Media Reports. At the beginning of this month, Trump warned the potential additional tariffs on semiconductors.
The US export controls have also limited TSMC’s business with China and the business of key customers such as NVIDIA and AMD. However, in the midst of the resolution of trade relations between Beijing and Washington, Nvidia and AMD said that they have received government guarantees that allowed China to send products to China early this week.
Sravan Kundojjala, a semi -analyst specialized in Global Foundries, includes potential order deductions from smartphone and PC customers due to the appreciation of the Taiwan Dollar among the other winds faced by TSMC in the second half of the year.
TSMC shares on the Taiwan list have increased by about 5% so far this year.
