Taiwan Semiconductor Manufacturing Co. (TSMC), the world’s leading producer of advanced AI chips, reported a record-breaking net profit of T$398.3 billion ($13.5 billion) for the second quarter of 2025—marking its fifth consecutive quarter of double-digit growth.
This 60% year-on-year surge in profit beat analysts’ expectations and highlights the booming demand for artificial intelligence technologies.
TSMC projects third-quarter revenue to reach between $31.8 billion and $33 billion, a significant leap from $23.5 billion in the same period last year and $30 billion in the previous quarter. The company, which supplies major tech giants including Apple and Nvidia, attributes much of its momentum to accelerating AI demand. However, it remains cautious about the remainder of the year due to potential disruptions from new U.S. tariffs and the strengthening of the Taiwan dollar.
Earlier this year, TSMC announced a $100 billion U.S. investment plan alongside former President Donald Trump, adding to its existing $65 billion commitment toward three semiconductor plants in Arizona—one of which is already operational. These investments underscore the company’s strategic shift to mitigate geopolitical risks and secure its global supply chain.
Despite the strong financial performance, Taiwan-listed shares of TSMC have only gained 5% so far this year, following an 80% surge in 2024. Investors remain wary of macroeconomic headwinds, including trade tensions and unfavorable currency movements, which could temper the company’s otherwise bullish AI-driven growth outlook.