TSMC July Sales Jump 26% MoM on AI Demand Surge

TSMC reported a significant 26% month-on-month increase in sales for July, reaching NT$323.17 billion ($10.8 billion), driven by rising demand for advanced semiconductor chips, particularly in artificial intelligence (AI) applications [1]. This surge marks a continuation of the company's strong performance in 2025, with sales for the first seven months of the year rising 38% compared to the same period in 2024 [1].

The company’s Q2 2025 results also reflected robust growth, with a 11.3% increase in revenue and a 10.2% rise in income compared to Q1. TSMC recorded $30 billion in revenue during the second quarter, with a notable 42.7% increase in profit margin [1]. Looking ahead, TSMC projects third-quarter revenue to range between $31.8 billion and $33 billion, with anticipated growth of 57.5% in gross profit and 47.5% in operating profit margin [1].

According to Wendell Huang, TSMC’s Senior VP and CFO, the second quarter's performance was supported by sustained demand for AI and high-performance computing (HPC) technologies. Huang expects this momentum to continue into Q3 2025, driven by strong demand for the company’s leading-edge process technologies [1].

The tariff landscape also influenced TSMC’s recent performance. Following U.S. President Donald Trump’s announcement that TSMC would be exempt from the previously proposed 100% tariff on chip imports, the company’s share price hit a record high of 1,180 Taiwan dollars on August 7, rising 4.9% [1]. Over the past 12 months, TSMC’s shares have grown by 28%, and it has seen a 10% increase in 2025, driven largely by demand for semiconductor chips [1].

TSMC has been proactive in aligning with U.S. policy goals, with a planned $100 billion investment in the country over the next five years. Its total U.S. investment now stands at approximately $165 billion, supporting Trump’s push for increased domestic chip production [1]. Daniel Nystedt, a vice president at TriOrient Investments, noted that U.S. investment and manufacturing remain key concerns, with TSMC and other major chipmakers benefiting from Trump’s tariff exemptions [1].

Industry analysts have also highlighted TSMC’s strategic position in the current market. Charles Shum, a Bloomberg Intelligence analyst, pointed out that TSMC and GlobalWafers are among the leading semiconductor companies in the region likely to benefit from the new tariff policies, especially following substantial investments in U.S. production facilities [1].

The broader semiconductor industry is showing signs of recovery, with the World Semiconductor Trade Statistics organization reporting a 19.6% year-on-year increase in global chip sales for the 12 months ending June [1]. This trend aligns with TSMC’s recent performance, reinforcing the company’s central role in meeting the growing global demand for advanced chips.

Sources:

[1] TSMC rides increasing AI demand to 26% surge in July sales

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