TSMC’s second-quarter revenue soars almost 61%, beating estimates as AI chip demand stays robust

Taiwan Semiconductor Manufacturing Firm on Thursday reported a close to 61% year-on-year rise in second-quarter revenue, beating estimates, as demand for synthetic intelligence chips stays robust. 

Listed here are TSMC’s first-quarter outcomes versus LSEG SmartEstimates:

• Income: 933.80 billion new Taiwan {dollars} ($31.7 billion), vs. NT$931.24 billion anticipated
• Web revenue: NT$398.27 billion, vs. NT$377.86 billion 

Second-quarter web revenue hit a file excessive, in accordance with Reuters.

TSMC’s web income within the June quarter rose 38.65% from a 12 months in the past to NT$933.80 billion, additionally beating estimates.

Superior chips, with sizes 7-nanometer or smaller, accounted for 74% of TSMC’s complete wafer income within the quarter. In semiconductor know-how, smaller nanometer sizes signify extra compact transistor designs, which result in larger processing energy and effectivity.

TSMC, the world’s largest contract chip producer, has benefited from the megatrend in the direction of AI because it positive factors from producing superior processors for shoppers together with Nvidia and Apple.

Nonetheless, the corporate faces potential headwinds from the commerce coverage of the U.S. President Donald Trump, who has threatened steep “reciprocal tariffs” on Taiwan.

Taiwan faces 32% tariffs introduced in April and is within the midst of commerce talks with the U.S., in accordance with native media reviews. Trump earlier this month additionally warned of potential further tariffs on semiconductors.

U.S. export controls have additionally restricted TSMC’s enterprise with China, as nicely that of its key shoppers similar to Nvidia and AMD. Nonetheless, amid a thawing of commerce relations between Beijing and Washington, Nvidia and AMD mentioned earlier this week that they’d obtained authorities assurances permitting them to ship merchandise to China.