Taiwan Semiconductor Manufacturing Co. (TSMC), the world’s leading contract chipmaker, delivered record net profits in the second quarter, outpacing Wall Street expectations on a groundswell of demand for artificial intelligence processors.
Net income soared nearly 61% year-on-year to NTD 398.27 billion ($13.5 billion), handily beating consensus forecasts of NTD 377.86 billion, data from LSEG SmartEstimates showed. Quarterly revenue jumped 38.65% to NTD 933.80 billion, exceeding both analyst expectations and the previous year’s mark.
The rapid adoption of AI technology has positioned TSMC at the epicenter of the chip supply chain, thanks to its manufacturing edge in cutting-edge processors for clients such as Nvidia and Apple.
Advanced semiconductors—produced at process nodes of 7 nanometers or smaller—generated 74% of TSMC’s wafer revenue in the quarter, underlining the company’s technological lead.
Despite the blockbuster earnings, TSMC faces rising geopolitical uncertainty. The Trump administration has floated the prospect of a steeper “Reciprocal Tariffs” targeting Taiwan.
In April, President Donald Trump announced 32% tariffs on Taiwanese goods as Washington and Taipei enter high-stakes trade negotiations. Trump has also signaled potential new levies on semiconductors, a move that could raise costs and upend global chip supply chains.
In parallel, U.S. export restrictions to China continue to constrain TSMC and its American customers, notably Nvidia and AMD. However, recent signs of easing tensions between Beijing and Washington have prompted the U.S. government to grant permissions for some chip shipments to resume, according to statements from Nvidia and AMD.
