A motorcycle is seen adjacent a gathering of the Taiwan Semiconductor Manufacturing Company (TSMC), which is simply a Taiwanese multinational semiconductor declaration manufacturing and plan company, successful Hsinchu, Taiwan, connected April 16, 2025.
Daniel Ceng | Anadolu | Getty Images
Taiwan Semiconductor Manufacturing Company connected Thursday reported a adjacent 61% year-on-year emergence successful second-quarter profit, hitting a grounds precocious and beating estimates, arsenic request for artificial quality chips stayed strong.
The world's largest declaration spot shaper forecast third-quarter gross betwixt $31.8 cardinal and $33.0 cardinal — a 38% year-over-year summation and 8% higher from the anterior 4th astatine the midpoint.
TSMC CEO C.C. Wei said successful the net telephone that the institution expects its full-year 2025 gross to emergence by astir 30% successful U.S. dollar terms, supported by maturation successful artificial quality and request for its astir precocious technologies.
Here are the company's results versus LSEG SmartEstimates:
- Revenue: 933.80 cardinal caller Taiwan dollars ($31.7 billion), vs. NT$931.24 cardinal expected
- Net income: NT$398.27 billion, vs. NT$377.86 billion
TSMC's nett gross successful the June 4th roseate 38.65% from a twelvemonth agone to NT$933.80 billion, besides beating estimates.
The company's shares were up implicit 4% astatine 4:30 a.m. ET connected trading level Robinhood.
TSMC's high-performance computing division, which encompasses artificial quality and 5G applications, drove 2nd 4th sales, contributing 60% of revenue. That stock of HPC gross was up from 52% successful the aforesaid play past year.
TSMC has benefited from the artificial-intelligence megatrend arsenic it manufactures precocious AI processors for clients including Nvidia and Apple.
"The superior operator of maturation for TSMC has been the robust request for AI related chips, peculiarly for the starring borderline nodes beneath 7nm," said Brady Wang, subordinate manager astatine Counterpoint Research.
In semiconductor technology, smaller nanometer sizes signify much compact transistor designs, which pb to greater processing powerfulness and efficiency. TSMC said precocious chips, with sizes 7-nanometer oregon smaller, accounted for 74% of TSMC's full wafer gross successful the quarter.
"Surging request from the AI roar is highly sustainable successful the adjacent term, with AI inactive successful its precise opening stages and continues to grow crossed industries," Wang added.
However, the institution faces imaginable headwinds from the commercialized argumentation of the U.S. President Donald Trump, who has threatened steep "reciprocal tariffs" connected Taiwan.
Taiwan faces 32% tariffs announced successful April and is successful the midst of commercialized talks with the U.S., according to local media reports. Trump earlier this period besides warned of imaginable additional tariffs connected semiconductors.
"Looking into 2nd fractional of 2025 we person not seen immoderate alteration successful our customers behaviour truthful far. However, we recognize determination are uncertainties and hazard from the imaginable interaction of tariff policies," Wei said connected Thursday.
U.S. export controls person besides restricted TSMC's concern with China, arsenic good that of its cardinal clients specified arsenic Nvidia and AMD. However, amid a thawing of commercialized relations betwixt Beijing and Washington, Nvidia and AMD said earlier this week that they had received authorities assurances allowing them to vessel products to China.
Other headwinds facing TSMC successful the 2nd fractional of the twelvemonth see appreciation of the Taiwan dollar and imaginable bid cuts from smartphone and PC clients owed to planetary macro conditions, said Sravan Kundojjala, an expert astatine SemiAnalysis specializing successful planetary foundries.
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