TSMC Exceeds Forecasts with Record $13.5B Quarterly Profit

Taiwan Semiconductor Manufacturing Company (TSMC), the world’s leading maker of high-performance chips used in artificial intelligence applications, reported a remarkable surge in profit for the second quarter. Riding on a wave of escalating global demand for AI technologies, the company’s net income soared by 60% year-over-year, far exceeding market expectations and setting a new quarterly record.

Cautious Optimism for the Coming Quarters

Despite the robust performance, TSMC remains measured in its outlook for the rest of the year. While it forecasts continued strong revenue growth for the third quarter, the company flagged potential risks that could cloud its longer-term trajectory. Among these are looming uncertainties such as the impact of newly announced U.S. tariffs and broader macroeconomic conditions, both of which could influence global demand and cost structures.

Surpassing Analyst Expectations Once Again

In the April-to-June period, TSMC recorded a net profit of NT$398.3 billion (US$13.5 billion), marking its fifth consecutive quarter of double-digit earnings growth. This figure significantly outpaced analyst projections, which had estimated profits at NT$377.9 billion according to LSEG SmartEstimate, a consensus compiled from 20 financial analysts.

Revenue Guidance Reflects Strong Growth Momentum

Looking ahead, TSMC anticipates third-quarter revenues to fall between US$31.8 billion and US$33 billion. This would represent a significant increase from the US$23.5 billion posted in the same quarter last year, and also an improvement over the US$30 billion earned in the second quarter of this year. The projections underscore the continued momentum driven by AI-related chip production and demand from major technology clients.

Currency Headwinds and Tariff Concerns

In addition to the potential fallout from U.S. trade tariffs, TSMC also warned of the negative effects of currency fluctuations. Specifically, the recent strengthening of the Taiwan dollar poses a challenge by eroding the value of overseas earnings when converted back to the local currency. This adds another layer of unpredictability to the company’s financial performance going forward.

Massive U.S. Investments Reflect Strategic Commitment

Demonstrating its long-term strategic commitment to the U.S. market, TSMC reaffirmed its investment plans stateside. The company is moving forward with a massive US$100 billion investment initiative, first unveiled at the White House in March alongside former President Trump. This is in addition to US$65 billion already committed to the development of three semiconductor plants in Arizona, one of which has begun operations.

Market Performance Mirrors Global Uncertainty

TSMC’s stock, listed on the Taiwan Stock Exchange, reflected mixed investor sentiment over the past year. While the company’s share price surged roughly 80 percent in 2023, it has experienced modest gains of just 5 percent so far in 2025. Analysts attribute this slower growth to ongoing concerns surrounding trade policies and volatile currency exchange rates, which have introduced a note of caution among investors.