TSMC profit surges 61% fuelled by AI chip, high performance computing demand
Commenting on the results, Wendell Huang, Senior Vice President and Chief Financial Officer of TSMC, said, "Our business in the second quarter was supported by continued robust AI and HPC-related demand. Moving into the third quarter, we expect our business to be supported by strong demand for our leading-edge process technologies.
For the quarter ending June 30, 2025, TSMC posted consolidated revenue of NTD 933.79 (USD 31.73) billion, marking a 38.6 per cent increase compared to the same quarter last year.
Revenue also rose by 11.3 per cent from the previous quarter. Net income for the period reached NTD 398.27 (USD 13.53) billion, representing a significant year-over-year growth of 60.7 per cent. Diluted earnings per share (EPS) stood at NTD 15.36, or USD 2.47 per American Depository Receipt (ADR) unit, also up 60.7 per cent compared to Q2 2024.
The company's profitability remained strong, with a gross margin of 58.6 per cent, an operating margin of 49.6 per cent, and a net profit margin of 42.7 per cent.
TSMC's advanced semiconductor nodes continued to contribute the bulk of its wafer revenue. In the second quarter, 3-nanometer technology accounted for 24 per cent of total wafer revenue, while 5-nanometer contributed 36 per cent, and 7-nanometer added another 14 per cent.
Altogether, advanced technologies, defined as 7-nanometer and more advanced, represented 74 per cent of TSMC's wafer revenue, underscoring the company's leadership in cutting-edge chip manufacturing.
Looking ahead, the company expects continued growth in the third quarter of 2025. Based on current business conditions and assuming an exchange rate of NTD 29.0 to USD 1, TSMC forecasts revenue to be in the range of USD 31.8 billion to USD 33.0 billion.
The company anticipates a gross profit margin between 55.5 per cent and 57.5 per cent, and an operating profit margin between 45.5 per cent and 47.5 per cent.
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