TSMC’s Profits Skyrocket 61% to an All-Time High, Driven by AI Chip Demand
Taiwan Semiconductor Manufacturing Company (TSMC), the world’s leading contract chipmaker, has reported a remarkable 61% year-over-year increase in its second-quarter profit. This surge has led to a record-breaking high of $13.55 billion. The significant increase can be attributed to the continued robust demand for artificial intelligence chips and high-performance computing processors.
TSMC’s revenue saw a 38% increase, reaching $31.7 billion. Advanced chip technologies (7-nanometer and smaller) made up 74% of the company’s wafer revenue. The high-performance computing segment, which includes AI and 5G networking chips, accounted for 60% of TSMC’s second-quarter revenue. This is a notable increase from 52% a year ago.
CEO C.C. Wei has announced that the company anticipates its full-year 2025 revenue to rise by approximately 30% in U.S. dollar terms. This growth is expected to be driven by the expansion in artificial intelligence and the demand for advanced technologies.
In response to the rising demand, TSMC has revised its third-quarter revenue forecast to fall between $31.8 billion and $33.0 billion. This represents a 38% year-over-year increase. To meet this surging demand, the company is fast-tracking the construction of its Arizona fabs. The manufacturing capacity is fully booked through 2027.
Source: CNBC