TSMC Q2 Profit Surges 61%, Beating Estimates Amid AI Demand Boom

Taiwan Semiconductor Manufacturing Co. reported a 61% jump in profit for the June quarter, exceeding analysts' expectations. The company's revenue has grown 40% over the first half of the year, driven by strong demand for high-end artificial intelligence chips. CEO C.C. Wei predicts 2025 sales will grow in the mid-20% range in US dollar terms. TSMC plans to spend $100 billion on expanding manufacturing capacity, including in Arizona, Japan, and Germany.

Taiwan Semiconductor Manufacturing Co. (TSMC) reported a 61% jump in profit for the June quarter, surpassing analysts' expectations. The company's revenue has grown 40% over the first half of the year, driven by strong demand for high-end artificial intelligence (AI) chips [2]. CEO C.C. Wei predicts 2025 sales will grow in the mid-20% range in US dollar terms, and TSMC plans to spend $100 billion on expanding manufacturing capacity, including in Arizona, Japan, and Germany [4].

TSMC's second-quarter profit is expected to reach T$377.4 billion ($12.9 billion), marking a 52% increase over the previous year [1]. This growth is attributed to the company's role as the world's main producer of advanced AI chips, with a significant portion of its revenue coming from major tech companies like Nvidia and Apple [1]. Despite concerns over U.S. tariffs and the strengthening Taiwan dollar, TSMC's earnings call on July 17 is expected to provide further insights into the company's outlook [1].

The company's first-half revenue surge of 40% highlights the growing demand for AI chips, with TSMC's sales serving as a barometer for the sector [3]. TSMC's CEO, C.C. Wei, has stated that demand for AI chips continues to outstrip supply, and the company plans to reinvest USD 100 billion to expand its manufacturing capabilities in Arizona and enhance capacities in Japan, Germany, and Taiwan [4].

TSMC's stock has seen significant fluctuations, with shares surging 80% last year but climbing just 5% for the year to date on worries about tariffs and unfavourable currency exchange rates [1]. Despite these concerns, TSMC's robust position within the tech landscape is evident, with investors continuing to show confidence in the company's pivotal role in developing AI infrastructure.

References:
[1] Reuters. (2025, July 16). TSMC quarterly profit seen hitting record levels despite Trump tariffs and forex concerns. Retrieved from https://www.reuters.com/world/asia-pacific/tsmc-quarterly-profit-seen-hitting-record-trump-tariffs-forex-concern-2025-07-16/
[2] Yahoo Finance. (2025, July 16). TSMC's first-half revenue surges 40% on booming AI demand. Retrieved from https://finance.yahoo.com/news/tsmcs-first-half-revenue-surges-114604271.html
[3] Gulf News. (2025, March 10). TSMC's sales quicken in first two months in upbeat note for AI. Retrieved from https://gulfnews.com/technology/tsmc-s-sales-quicken-in-first-two-months-in-upbeat-note-for-ai-1.500056383
[4] AInvest. (2025, July 16). TSMC: AI-driven surge, chipmaker targets $300 billion sales, global expansion. Retrieved from https://www.ainvest.com/news/tsmc-ai-driven-surge-chipmaker-targets-300-billion-sales-global-expansion-2507/