TSMC's Q2 Profit Soars to Record High Amid AI Chip Demand Surge

TSMC second-quarter sales rise 38.6% y/y, beat forecasts

TAIPEI, July 10 (Reuters) - TSMC (2330.TW), opens new tab, the world's largest contract chipmaker, reported on Thursday second-quarter revenue of T$933.80 billion ($31.9 billion), beating market forecasts, as demand for the company's products leaps on surging interest in artificial intelligence applications. Revenue for April-June came in at T$933.8 billion ($31.9 billion), according to Reuters calculations, rising 38.6% from T$673.51 billion in the year ago period. The latest result topped an LSEG SmartEstimate of T$927.831 billion drawn from 21 analysts, and was also better than the guidance of $28.4 billion to $29.2 billion issued by TSMC in April. TSMC will report full second-quarter earnings on July 17, including an outlook for the current quarter and full year. The company, whose customers include Nvidia (NVDA.O), opens new tab, has been a major beneficiary of advances in AI. Reporting by Faith Hung and Wen-Yee Lee; Editing by Kim Coghill and Jamie Freed Our Standards: The Thomson Reuters Trust Principles., opens new tab Suggested Topics:Artificial Intelligence

TSMC quarterly profit seen hitting record but Trump tariffs, forex a concern

TAIPEI, July 17 (Reuters) - TSMC (2330.TW), opens new tab, the world's main producer of advanced AI chips, is expected to post a 52% jump in second-quarter profit to record levels on Thursday, though U.S. tariffs and a strong Taiwan dollar could weigh on its outlook. Taiwan Semiconductor Manufacturing Co, the world's largest contract chipmaker and a key supplier to Nvidia (NVDA.O), opens new tab and Apple (AAPL.O), opens new tab, is forecast to report net profit of T$377.4 billion ($12.9 billion) for the three months through June 30, according to an LSEG SmartEstimate compiled from 21 analysts. SmartEstimates place greater weight on forecasts from analysts who are more consistently accurate. The company will report the headline profit figure at 0530 GMT which will be followed by an earnings call from 0600 GMT that will include third-quarter guidance. TSMC has already flagged a rise in second-quarter revenue of 38.6%. Any profit result above T$374.68 billion would mark the company's highest-ever quarterly net income and its sixth consecutive quarter of profit growth. It remains unclear just how much U.S. President Donald Trump's tariffs will affect TSMC. Taiwan was threatened with a 32% reciprocal tariff rate in April but has yet to be notified of an updated figure that some countries have received. Trump also said this month that tariffs on semiconductors are likely to come soon. The company said in June that U.S. tariffs were having some indirect impact, noting they can lead to slightly higher prices, which may in turn weigh on demand. In March, TSMC announced a $100 billion investment in the U.S. alongside Trump at the White House, on top of $65 billion pledged for three Arizona plants - two of which have been built. Another key issue is the Taiwan dollar's 12% appreciation against the greenback so far this year. TSMC has said a 1% appreciation in the Taiwan dollar typically reduces its gross margin by 0.4 percentage points. In June, the company said that strengthening in the Taiwan dollar had shaved more than 3 percentage points off its gross margin. Shares in TSMC surged some 80% last year but have climbed just 5% for the year to date on worries about tariffs and unfavourable currency exchange rates. Reporting by Wen-Yee Lee and Ben Blanchard; Editing by Edwina Gibbs Our Standards: The Thomson Reuters Trust Principles., opens new tab

TSMC quarterly profit seen soaring to record but Trump tariffs, forex a concern

TAIPEI, July 15 (Reuters) - TSMC (2330.TW), opens new tab, the world's main producer of advanced AI chips, is expected to post a 52% jump in second-quarter profit to record levels, though U.S. tariffs and a strong Taiwan dollar could weigh on its outlook. Artificial intelligence-related demand continues to boom and while foundry industry revenue will probably grow 17% to 18% this year, sales for TSMC, by virtue of its market-leading position, will likely expand closer to 30%, said Mario Morales, group vice president at research firm IDC. Taiwan Semiconductor Manufacturing Co, the world's largest contract chipmaker and a key supplier to Nvidia (NVDA.O), opens new tab and Apple (AAPL.O), opens new tab, is forecast to report net profit of T$377.4 billion ($12.9 billion) for the three months through June 30, according to an LSEG SmartEstimate compiled from 21 analysts. SmartEstimates place greater weight on forecasts from analysts who are more consistently accurate. TSMC has already flagged a rise in second-quarter revenue of 38.6%. Any profit result above T$374.68 billion would mark the company's highest-ever quarterly net income and its sixth consecutive quarter of profit growth. It remains unclear just how much U.S. President Donald Trump's tariffs will affect TSMC. Taiwan was threatened with a 32% reciprocal tariff rate in April but has yet to be notified of an updated figure that some countries have received. Trump also said this month that tariffs on semiconductors are likely to come soon. The company said in June that U.S. tariffs were having some indirect impact, noting they can lead to slightly higher prices, which may in turn weigh on demand. In March, TSMC announced a $100 billion investment in the U.S. alongside Trump at the White House, on top of $65 billion pledged for three Arizona plants - two of which have been built. Another key issue is the Taiwan dollar's 12% appreciation against the greenback so far this year. "The exchange rate is a bigger concern as so much TSMC revenue is in USD," said Dan Nystedt, vice-president at TriOrient, an Asia-based private investment firm. TSMC has said a 1% appreciation in the Taiwan dollar typically reduces its gross margin by 0.4 percentage points. In June, the company said the Taiwan dollar's appreciation had shaved more than 3 percentage points off its gross margin. The company is due to report on Thursday and will provide third-quarter guidance during an earnings call scheduled for 0600 GMT. Shares in TSMC surged some 80% last year but have climbed just 3.7% for the year to date on worries about tariffs and unfavourable currency rates. ($1 = 29.2610 Taiwan dollars) Reporting by Wen-Yee Lee; Editing by Ben Blanchard and Edwina Gibbs Our Standards: The Thomson Reuters Trust Principles., opens new tab

TSMC Q2 profit surges 60%, reaches historic high

TAIPEI, July 17 (Reuters) - TSMC (2330.TW), opens new tab, the world's largest contract chipmaker, posted a 60.7% jump in second-quarter net profit on Thursday, beating market forecasts and hitting a historic high as it benefited from surging demand for semiconductors used in artificial intelligence applications. Taiwan Semiconductor Manufacturing Co , whose customers include Apple (AAPL.O), opens new tab and Nvidia (NVDA.O), opens new tab, saw April-June net profit rise to T$398.3 billion ($13.53 billion). The profit handily beat a T$377.9 billion LSEG SmartEstimate, which is weighted toward forecasts from analysts who are more consistently accurate. ($1 = 29.4440 Taiwan dollars) Reporting by Wen-Yee Lee, Faith Hung and Yimou Lee; Writing by Ben Blanchard; Editing by Edwina Gibbs Our Standards: The Thomson Reuters Trust Principles., opens new tab

TSMC's second-quarter profit soars nearly 61% as AI chip demand stays strong

A motorcycle is seen near a building of the Taiwan Semiconductor Manufacturing Company (TSMC), which is a Taiwanese multinational semiconductor contract manufacturing and design company, in Hsinchu, Taiwan, on April 16, 2025. Taiwan Semiconductor Manufacturing Company on Thursday reported a near 61% year-on-year rise in second-quarter profit, beating estimates and hitting a fresh high as demand for artificial intelligence chips stays strong. Here are TSMC's first-quarter results versus LSEG SmartEstimates: TSMC's net revenue in the June quarter rose 38.65% from a year ago to NT$933.80 billion, also beating estimates. TSMC, the world's largest contract chip manufacturer, has benefited from the megatrend towards AI as it gains from producing advanced processors for clients including Nvidia and Apple. However, the company faces potential headwinds from the trade policy of the U.S. President Donald Trump, who has threatened steep "reciprocal tariffs" on Taiwan. Taiwan faces 32% tariffs announced in April and is in the midst of trade talks with the U.S., according to local media reports. Trump earlier this month also warned of potential additional tariffs on semiconductors. U.S. export controls have also restricted TSMC's business with China, as well that of its key clients such as Nvidia and AMD. However, amid a thawing of trade relations between Beijing and Washington, Nvidia and AMD said earlier this week that they had received government assurances allowing them to ship products to China.

TSMC's half-year revenue surges 40 percent

Taiwanese chip giant TSMC reported on Thursday a 40% surge in revenue in the first six months on robust demand for AI technology. Taiwan Semiconductor Manufacturing Company is the world's largest contract maker of chips, which have become the lifeblood of the global economy, powering everything from smartphones to missiles. TSMC's half-year revenue increased 40% to NT$1.77 trillion (US$60.8 billion) from a year earlier, the company, whose clients include tech giants Nvidia and Apple, said in a statement. Chairman and chief executive CC Wei told a recent briefing that TSMC expected to see record earnings this year, as artificial intelligence demand would remain "very strong." The company's sales surged in recent months after US President Donald Trump's global tariff blitz spurred companies to stock up, owing to fears that higher levies were in the pipeline. Wei told shareholders in June that TSMC's business "may be affected" if tariffs force up prices and demand for chips falls, but he added, "Our business will still be very good." Taiwan's government said Thursday it has yet to receive a letter on the tariff it would face from the United States, as its delegation is currently negotiating in Washington. Neighboring Japan and South Korea are among more than 20 countries receiving letters this week from Trump warning of "reciprocal" tariffs from August 1. Taipei has sought to avoid Trump's threatened levies by pledging increased investment in the United States, more purchases of US energy and greater defense spending.

TSMC revenue climbs 39% in latest sign of AI spending boom

Taiwan Semiconductor Manufacturing Co.'s revenue rose a better-than-anticipated 39% in the June quarter, buoying expectations for a sustained post-ChatGPT boom in AI spending. Sales for the chipmaker to Nvidia Corp. and Apple Inc. climbed to NT$934 billion ($32 billion) for the three months, based on its reported monthly revenue. That beat the average analyst projection for about NT$928 billion. Investors have piled back into AI-linked companies, shaking off a funk that settled in after China's DeepSeek cast doubt on whether the likes of Meta Platforms Inc. and Google needed to spend that much money on data centers. This week, Nvidia became the first company in history to hit a $4 trillion valuation, underscoring investors' renewed enthusiasm for companies like TSMC key to building the infrastructure for AI. TSMC chief executive officer C.C. Wei reassured shareholders in June that AI chip demand still outstripped supply, and reaffirmed an outlook for 2025 sales to grow in the mid-20% range in US dollar terms. His company has pledged to spend another $100 billion ramping up manufacturing in Arizona, in addition to an expansion in Japan, Germany and back home. As the world's largest contract chipmaker, TSMC sits at the heart of the global technology supply chain, producing cutting-edge chips for iPhones and Nvidia's AI offerings. While Nvidia is fueling its growth, TSMC remains reliant on Apple and smartphone makers for most of its business. For 2025, investors remain wary about the impact of tariffs on the global economy and the electronics sector. The Trump administration's trade war is prompting economists to scale back their forecasts for gross domestic product growth worldwide, casting doubt over the outlook for everything from iPhone demand to computing.

TSMC chair C.C. Wei hails Nvidia's renewed AI chip sales to China as 'very positive news'

Taiwanese chipmaking giant TSMC reported Thursday a forecast-beating 60% rise in net profit for the second quarter on sustained demand for artificial intelligence technology. Taiwan Semiconductor Manufacturing Company is the world's largest contract maker of chips and counts Nvidia and Apple among its clients. The firm said its net profit for the three months to June soared 60.7% from a year ago to NT$398.3 billion ($13.5 billion). That beat expectations of NT$376.97 billion, according to a Bloomberg News survey of analysts. Second-quarter revenue was up 39% on-year, also topping forecasts. Chips are essential for generative AI, which has exploded in recent years and transformed the global economy, and demand for them was expected to remain "robust", TSMC chairman and chief executive CC Wei told a briefing Thursday. Nvidia said this week it will resume sales of its H20 AI chips to China after Washington pledged to remove licensing restrictions that had halted exports. Wei welcomed Nvidia's "good news". "China is a big market and my customer can still continue to supply the chip to the big market and it's very positive news for them, and in return it's very positive news for TSMC," Wei said. The quarterly results follow U.S. President Donald Trump's latest barrage of tariffs and renewed threats to impose levies on pharmaceutical products and chips. Wei said last month that the company "may be affected" if the tolls force up prices and demand for chips falls, but he added: "Our business will still be very good." Taiwan has been locked in negotiations with Washington over Trump's threat to impose a 32% tariff on the island's exports if they do not strike a deal by August 1. To help its case, Taipei has pledged to increase investment in the United States, buy more U.S. energy and increase its own defense spending.

Taiwan's TSMC says second quarter profit up 60%

Taiwanese chipmaking giant TSMC reported Thursday a forecast-beating 60% rise in net profit for the second quarter on sustained demand for artificial intelligence technology. Taiwan Semiconductor Manufacturing Company is the world's largest contract maker of chips and counts Nvidia and Apple among its clients. The firm said its net profit for the three months to June soared 60.7% from a year ago to NT$398.3 billion (US$13.5 billion). That beat expectations of NT$376.97 billion, according to a Bloomberg News survey of analysts. Second-quarter revenue was up 39% on-year, also topping forecasts. Chips are essential for generative AI, which has exploded in recent years and transformed the global economy, and demand for them was expected to remain "robust," TSMC chairman and chief executive CC Wei told a briefing Thursday. TSMC also upgraded its revenue forecast for the year, easing fears of an AI slowdown and pushing its US stock futures higher. Nvidia said this week it will resume sales of its H20 AI chips to China after Washington pledged to remove licensing restrictions that had halted exports. Wei welcomed Nvidia's "good news." "China is a big market and my customer can still continue to supply the chip to the big market and it's very positive news for them, and in return it's very positive news for TSMC," Wei said. The quarterly results follow US President Donald Trump's latest barrage of tariffs and renewed threats to impose levies on pharmaceutical products and chips. Wei said last month that the company "may be affected" if the tolls force up prices and demand for chips falls, but he added, "Our business will still be very good." Taiwan has been locked in negotiations with Washington over Trump's threat to impose a 32% tariff on the island's exports if they do not strike a deal by August 1. To help its case, Taipei has pledged to increase investment in the United States, buy more US energy and increase its own defense spending.

TSMC's profit soared by 60% thanks to robust AI chip demand

The world's largest contract chip manufacturer TSMC, reported better-than-expected results as AI chip demand has been boosting the company's sales. Chipmaking giant Taiwan Semiconductor Manufacturing Company (TSMC) reported better-than-expected results for the second quarter and also fuelled investors' hopes by raising its 2025 outlook. The firm, delivering to Apple and Nvidia among others, is benefiting from big tech companies' hunger to build their AI capacities, resulting in a resilient demand for high-end semiconductors. For the three months ending 30 June, the company's net income was NT$398.2bn (€11.7bn), 60.7% up compared to last year. Year-over-year, second quarter revenue increased by 38.6%, and came in at NT$933.7bn (€27.35bn), Compared to the first quarter of 2025, second quarter results represented an 11.3% increase in revenue and a 10.2% increase in net income. "TSMC delivered a strong beat, ahead of expectations. Margins remained solid despite currency headwinds from a stronger Taiwanese dollar," said Ben Barringer, global technology analyst at Quilter Cheviot. He added, "AI‑related demand continues to be the engine of growth, while non‑AI segments are beginning to recover more steadily." "Our business in the second quarter was supported by continued robust AI and HPC (High-Performance Computing)-related demand," said Wendell Huang, Senior VP and Chief Financial Officer of TSMC. "Moving into the third quarter of 2025, we expect our business to be supported by strong demand for our leading-edge process technologies." TSMC raised guidance for Q3, now expecting over 30% year‑on‑year sales growth, up from previous full‑year expectations of 25%. "Revenue is expected to be between $31.8bn and $33bn," their statement said. Washington's tariff policy is overshadowing the company's outlook. Taiwan is in talks with the US to set lower trade tariffs on its exports to the country than the 32%, President Donald Trump announced in April. Taiwan is also one of the countries expecting a letter from the US President in the coming days, similar to those Trump has used to outline tariffs for other countries over the past week -- including 30% for the European Union, if there is no trade deal before a recently postponed deadline of 1 August. Earlier this month, the US President also warned of potential additional tariffs on semiconductors. Recently, investors piled back into AI-linked companies, pushing Nvidia to become the first company in history to hit a $4 trillion market capitalisation, after its shares hit a new record. However, individual company news fuel concerns that the market trend may be short-lived. A day before TSMC's results, Dutch chipmaking firm ASML saw its shares drop drastically after the company lowered its financial outlook for 2026 due to "increasing uncertainty" in geopolitics, according to CEO Christophe Fouquet. As for TSMC, investors appear to be optimistic. After the earnings report, Taiwan Semiconductor's stock price rose 4% in premarket trade in the US.

Taiwan's TSMC says second quarter profit up 60%

Taipei (AFP) - Taiwanese chipmaking giant TSMC reported Thursday a forecast-beating 60 percent rise in net profit for the second quarter on sustained demand for artificial intelligence technology. Taiwan Semiconductor Manufacturing Company is the world's largest contract maker of chips and counts Nvidia and Apple among its clients. TSMC said its net profit for the three months to June soared 60.7 percent from a year ago to NT$398.3 billion (US$13.5 billion). That beat expectations of NT$376.97 billion, according to a Bloomberg News survey of analysts. Second quarter revenue was up 39 percent on-year, also beating forecasts. Chips are essential for generative AI, which has exploded in recent years and transformed the global economy. Nvidia said this week it will resume sales of its H20 AI chips to China after Washington pledged to remove licensing restrictions that had halted exports. The quarterly results follow Trump's latest barrage of tariffs and renewed threats to impose levies on pharmaceutical products and chips. TSMC chairman and chief executive CC Wei said last month that the company "may be affected" if tariffs force up prices and demand for chips falls, but he added: "Our business will still be very good." Taiwan has been locked in negotiations with Washington over Trump's threat to impose a 32 percent tariff on the island's exports if they don't strike a deal by August 1. To help its case, Taipei has pledged to increase investment in the United States, buy more US energy and increase its own defence spending.

TSMC profits rise 61pc as AI drives demand for advanced chips

Taiwanese contract chips manufacturer TSMC continues to post huge profits, as it supplies the advanced chips required in the AI spending boom. The world leader in contract advanced chip manufacturing, with clients like Nvidia, AMD and Apple, TSMC's stock continues to rise as the demand for advanced chips for AI shows no sign of slowing. The Taiwanese chips giant announced a rise in profits of nearly 61pc for the quarter to June, beating even the most optimistic analyst projections. TSMC today (July 17) announced profits of $13.5bn, an increase of 60.7pc as demand for its advance chips continued to grow, to feed the AI boom. It's second quarter revenue was nearly $31bn, an increase of 44pc year-on-year, and up 18pc from the previous quarter. "Our business in the second quarter was supported by continued robust AI and HPC-related demand," said Wendell Huang, Senior VP and chief financial officer at TSMC. "Moving into third quarter 2025, we expect our business to be supported by strong demand for our leading-edge process technologies." TSMC says that, based on the company's current business outlook, management expects the overall performance for third quarter 2025 to be very positive, with revenues expected to be between $31.8bn and $33bn. The results would seem to confirm that the tech giants are not, as some feared, curtailing their spending on the tech and data centres required for the AI boom. Billy Leung, investment strategist at Global X ETFs in Sydney told Bloomberg it indicates that "AI optimism" continues. "For investors, TSMC results again ease fears of an AI slowdown," he said. "Margins hold, demand outlook good, generally reinforces the AI buildout is still well underway." Founded in 1987, TSMC - or Taiwan Semiconductor Manufacturing Company - like Intel, is one of the few organisations to own its own Foundry where it manufactures on a huge scale the chips that most of the tech giants use to power their technology, whether that be smartphones, tablets, automotive or data centres. According to Investopedia, Apple accounts for about 20pc of TSMC's annual revenue and the US is TSMC's largest market by far. Some 50pc of its revenue comes from advanced chips of 5mm or less. Don't miss out on the knowledge you need to succeed. Sign up for the Daily Brief, Silicon Republic's digest of need-to-know sci-tech news.

Nvidia Supplier TMSC Boosts Outlook for Revenue Amid Strong AI Demand

TSMC's second-quarter earnings per share and revenue came in higher than estimates. Taiwan Semiconductor Manufacturing Co. (TSM) boosted its full-year revenue growth projection to around 30%, with strong AI demand fueling results at the world's largest contract chipmaker. TMSC's forecast sent shares in the Taiwan-based supplier to tech heavyweights Apple (AAPL) and Nvidia (NVDA) almost 4% higher in premarket trading Thursday. The shares have risen roughly 18% this year so far. The company expects its 2025 revenue to rise around 30% in U.S dollar terms, TSMC CEO C.C. Wei said in the company's second-quarter earnings call, according to a transcript provided by AlphaSense. In April, Wei had said he expected the chipmaker's full-year revenue to rise by "close to mid-20s percent." The chipmaker said it expects revenue of between $31.8 billion and $33 billion during the third quarter. At the midpoint of the range, that was higher than Visible Alpha's consensus estimate of 932.04 billion New Taiwan dollars, or about $31.67 billion. Meanwhile, the company registered second-quarter earnings per share of 15.36 New Taiwan dollars on revenue that rose 39% year-over-year to NT$933.79 billion. Analysts polled by Visible Alpha expected NT$14.6 and NT$929.79 billion, respectively.

TSMC's First-Half Revenue Surges 40% on Booming AI Demand

TSMC supplies AI chipmaker Nvidia, which hit the $4 trillion market cap threshold briefly Wednesday. Taiwan Semiconductor Manufacturing Co. (TSM), the world's largest contract chipmaker, posted a first-half revenue surge of 40% on booming AI demand, though June revenue dropped over the previous month. TSMC reported June revenue of 263.71 billion New Taiwan dollars ($9.02 billion), up almost 27% from a year earlier but down nearly 18% from May's figure. The first-half revenue of NT$1.77 trillion was up 40% over the same period last year. The U.S.-listed shares of the company, which supplies tech heavyweights such as AI darling Nvidia (NVDA), are rising more than 1% in premarket trading after entering Wednesday 17% higher this year. The fervor for AI plays has buoyed shares linked to the technology this year and briefly made Nvidia the first $4 trillion company on Wednesday. TSMC has also been expanding in the U.S., as President Donald Trump pushes for more domestic manufacturing. In March, TSMC CEO C.C. Wei joined President Trump in announcing the firm's plans to invest $100 billion in U.S.-based chip-manufacturing facilities. At the company's annual shareholder meeting in early June, Wei reportedly said that the chipmaker is unlikely to face a big hit from tariffs, as they are typically absorbed by U.S. importers. He also said, according to The Wall Street Journal, that AI demand remains strong and he projected record-high revenue and earnings at TSMC this year.

TSMC reports record profits as AI boom fuels chip demand; Stock expected to open at all-time high

Taiwan Semiconductor Manufacturing Company (TSMC), the world's largest contract chipmaker, has reported record quarterly earnings as global demand for artificial intelligence (AI) chips continues to grow at an unprecedented pace. Analysts expect the company's share price to surge sharply when markets open, potentially reaching levels never seen before in TSMC's trading history. The company posted a 61 percent rise in net profit in the April-June quarter, reaching NT$398.27 billion (£9.7bn; $12.8bn), while revenue grew by 44 percent year-on-year to $30.07 billion (£23.0bn), surpassing analyst expectations. TSMC's share price rose more than 6 percent in early Thursday(July 17) trading, reaching $175.29, and is on course to hit an all-time high, buoyed by investor optimism over the AI boom and strong demand from major clients such as Nvidia, Apple, and AMD. "The primary driver of growth for TSMC has been the robust demand for AI-related chips, particularly for the leading-edge nodes below 7nm," said Brady Wang, Associate Director at Counterpoint Research. TSMC's results have been fuelled by two main factors: a rapid global build-out of AI infrastructure and a spike in iPhone chip orders ahead of anticipated US tariffs on Taiwanese-made semiconductors. Advanced chips manufactured on 3nm, 5nm, and 7nm process nodes made up 74 percent of the company's revenue, a reflection of growing demand for more powerful, energy-efficient processors. These chips are essential for AI systems, data centres, and high-end smartphones. High-performance computing (HPC), which includes AI and server chips, contributed 60 percent of TSMC's total revenue, a sharp increase from 52 percent a year earlier. At the same time, the 3nm segment, used in the latest iPhones, climbed to 24 percent of total revenue, marking a notable shift toward premium chips. Despite the AI-led surge, smartphone-related revenue declined slightly to 27 percent, suggesting subdued consumer demand outside of flagship devices like the iPhone. TSMC has raised its full-year revenue growth forecast to 30 percent, up from a previous range of 20-30 percent. It also expects third-quarter revenue to be between $31.8 billion and $33.0 billion, which would represent 38 percent growth year-on-year. However, executives warned of potential challenges later in the year. CEO C.C. Wei noted that while current demand remains strong, "uncertainties remain in the second half, particularly around trade policy and customer inventory levels." There are growing concerns that demand may begin to level off in the final quarter of the year, following months of intense chip stockpiling by major technology companies. A possible saturation of AI-related purchases and broader macroeconomic pressures could dampen growth. TSMC's strong performance comes amid rising geopolitical tension. Earlier this year, US President Donald Trump announced 32 percent tariffs on Taiwanese semiconductors, citing national security concerns and the need to rebalance global trade. Additional tariffs on electronics and advanced components are also under discussion. This has led to front-loaded ordering behaviour, with companies rushing to place chip orders before tariffs take effect. In response, TSMC is accelerating the construction of its second fabrication facility in Arizona. Meanwhile, US export restrictions on AI chips destined for China remain in place. However, recent diplomatic signals indicate a modest easing of tensions, with Nvidia and AMD confirming they have received US approvals to resume limited shipments to Chinese partners. Still, such restrictions remain a key source of uncertainty for TSMC, which serves as the manufacturing backbone for many of the world's leading chip designers. With over 35 percent of its annual growth already secured in the first half, TSMC appears well-positioned for another strong quarter.

What To Expect From Taiwan Semiconductor Q2 Performance? - Taiwan Semiconductor (NYSE:TSM)

Taiwan Semiconductor Manufacturing Co TSM is expected to post a 52% jump in second-quarter 2025 profit, driven by booming AI demand. However, it faces pressure from potential U.S. tariffs and a sharply stronger Taiwan dollar. IDC's group VP Mario Morales told Reuters the foundry sector could grow 17-18% in 2025, but Taiwan Semiconductor's moat may push its sales growth closer to 30%. According to LSEG SmartEstimate, the company is forecast to report 377.4 billion New Taiwan dollars ($12.9 billion) in net profit for the quarter. If it exceeds 374.68 billion New Taiwan dollars, that would mark its highest-ever quarterly profit and its sixth straight quarter of earnings growth. Also Read: Taiwan Semiconductor Shifts Focus To $100 Billion USA Expansion Instead Of Japan Taiwan Semiconductor has already guided for a 38.6% jump in second-quarter revenue. The stock traded higher on Tuesday in solidarity with its semiconductor peers after reports indicated the Trump administration's plans to unveil a $70 billion tech and energy investment plan in Pennsylvania and that the U.S. lifted chip export curbs to China. TSMC stock surged nearly 20% year-to-date, topping the PHLX Semiconductor Index's 16% as a key supplier of Nvidia NVDA and Apple AAPL. Trending Investment OpportunitiesAdvertisementArrivedBuy shares of homes and vacation rentals for as little as $100. Get StartedWiserAdvisorGet matched with a trusted, local financial advisor for free.Get StartedPoint.comTap into your home's equity to consolidate debt or fund a renovation.Get StartedRobinhoodMove your 401k to Robinhood and get a 3% match on deposits.Get StartedProfit Headwinds However, the company faces external headwinds. In April, the U.S. threatened Taiwan with a 32% reciprocal tariff, and President Donald Trump recently indicated new chip tariffs could arrive soon. On the currency front, the Taiwan dollar has strengthened 12% against the U.S. dollar this year. Taiwan Semiconductor has noted that a 1% rise in the Taiwan dollar typically reduces its gross margin by 0.4 percentage points. On the management front, Taiwan Semiconductor announced Friday that Vanessa Lee, head of materials management, resigned for personal reasons. Senior Vice President and Deputy Co-COO Cliff Hou will immediately assume leadership of his materials management division. Lee joined Taiwan Semiconductor in 2022 and became vice president in August 2023. She developed forecasting systems and supply chain performance tools, earning credit for helping the chipmaker manage disruptions during the 2020 pandemic. In March, the company committed $100 billion to expand U.S. operations on top of the $65 billion already pledged for three chip plants in Arizona, announced alongside Trump at the White House. Taiwan Semiconductor will report second-quarter earnings Thursday and issue third-quarter guidance. Price Action: TSM stock is trading higher by 3.30% to $236.22 at last check Tuesday. Read Next: ASML Drops US Diversity Goals Under Trump's Watch Photo by Jack Hong via Shutterstock TSMTaiwan Semiconductor Manufacturing Co Ltd$236.313.34%Stock Score Locked: Edge Members Only Benzinga Rankings give you vital metrics on any stock - anytime. Unlock RankingsEdge RankingsMomentum77.60Growth94.88QualityN/AValue49.81Price TrendShortMediumLongOverviewAAPLApple Inc$211.041.16%NVDANVIDIA Corp$170.654.01%Market News and Data brought to you by Benzinga APIs

Taiwan Semiconductor Q2 Earnings - Taiwan Semiconductor (NYSE:TSM)

Tim Melvin's system has spotted 10X winners like NVIDIA and Matador -- see his next 6 picks and the options strategies to multiply gains at a free July 23 event. Register Here. Taiwan Semiconductor Manufacturing Co. (TSM) stock soared Thursday after the contract chipmaker delivered second-quarter results that blew past analyst expectations, driven by insatiable global demand for its advanced processor technologies essential for artificial intelligence applications. As a key supplier to tech giants like Nvidia NVDA for its graphics processing units (GPUs) and Apple AAPL for its smartphones, the company's strong results underscore its critical role in the global technology ecosystem. The company also provided an optimistic revenue forecast for the third quarter, further boosting investor confidence. Taiwan Semiconductor reported quarterly net sales of $30.07 billion (933.79 billion New Taiwanese dollars), up 38.6% year-over-year (Y/Y), topping the analyst consensus estimate of $30.04 billion. Net sales grew 11.3% quarter over quarter (Q/Q). Also Read: What To Expect From Taiwan Semiconductor Q2 Performance? Net income and earnings per share were $398.27 billion New Taiwanese dollars and 15.36 New Taiwanese dollars per share (or $2.47), up by 60.7% Y/Y, topping the analyst consensus estimate of $2.37. In U.S. dollar terms, revenue growth was 44.4% Y/Y and up by 17.8% Q/Q. The top-line performance topped the company's guidance of $28.4 billion-$29.2 billion. The company said 3-nm accounted for 24% of the total revenue, 5-nm accounted for 36%, and 7-nm technologies accounted for 14%. Advanced technologies (7nm and below) accounted for 74% of total wafer revenue. By platform, High-Performance Computing (HPC) and Smartphone represented 60% and 27% of net revenue, respectively, while IoT, Automotive, DCE, and Others each represented 5%, 5%, 1%, and 2%. From a geographic perspective, revenue from customers based in North America accounted for 75% of total net revenue in 2Q25, while revenue from China, Asia Pacific, Japan, and EMEA (Europe, Middle East, and Africa) accounted for 9%, 9%, 4%, and 3% of total net revenue, respectively. Trending Investment OpportunitiesAdvertisementArrivedBuy shares of homes and vacation rentals for as little as $100. Get StartedWiserAdvisorGet matched with a trusted, local financial advisor for free.Get StartedPoint.comTap into your home's equity to consolidate debt or fund a renovation.Get StartedRobinhoodMove your 401k to Robinhood and get a 3% match on deposits.Get StartedMargin Profile Taiwan Semiconductor's AI technology moat helped it expand its quarterly gross margins by 540 bps to 58.6%. The operating margin expanded by 710 bps to 49.6%. CFO Wendell Huang expects its business to be supported by strong demand for its leading-edge process technologies for the third quarter. During the second quarter, net cash generated from operating activities totaled 497.07 billion New Taiwanese dollars ($17.05 billion). Capital expenditures for the company on a consolidated basis totaled $9.63 billion in the second quarter of 2025. The company's cash and marketable securities stood at $90.36 billion at the end of the quarter. Outlook Taiwan Semiconductor guided third-quarter 2025 revenue of $31.8 billion to $33.0 billion versus the $32.7 billion analyst consensus estimate. It expects a gross margin of 55.5% to 57.5% and operating profit margins of 45.5% to 47.5%. In a notable development, Taiwan Semiconductor's Chairman, C.C. Wei, announced a significant increase in the company's investment in U.S. chip manufacturing in March. This new commitment of $100 billion came in addition to the $65 billion previously pledged in April 2024 for three fabrication plants in Arizona, one of which was already operational. Taiwan Semiconductor stock gained over 20% year-to-date and 57% in the last three months. During the same periods, the PHLX Semiconductor Index (which includes Taiwan Semiconductor) gained over 14% and 48%. The stock also got a boost from this week's reports indicating the Trump administration's plans to announce roughly $70 billion in AI and energy investments in Pennsylvania, and the U.S. government's move to ease certain chip export restrictions to China. However, the company acknowledged in June potential future headwinds due to President Donald Trump's trade policies, particularly his threats of "reciprocal tariffs" on Taiwan. Taiwan is currently subject to 32% tariffs imposed in April and is engaged in trade discussions with the U.S. Furthermore, Trump previously indicated the possibility of additional tariffs on semiconductors. According to Reuters, the company noted that key client Nvidia had recently been allowed by the U.S. government to resume sales to China of its H20 AI chip. Taiwan Semiconductor Chief Executive C.C. Wei told a press conference, "China is a big market, and my customer can continue to supply the chip to the big market, and it's very positive news for them and in return it's very positive news for Taiwan Semiconductor." However, Wei indicated that the momentum for fourth-quarter earnings might differ. "We are taking into consideration the possible impact of tariffs and a lot of other uncertainties, so we are becoming more conservative," he said, though he added that Taiwan Semiconductor had yet to see any changes in customer behavior so far. Price Action: TSM stock is trading higher by 4.10% to $247.30 premarket at last check Thursday. Read Next: Taiwan Semiconductor's Top Supply Chain Executive Exits Photo by Jack Hong via Shutterstock TSMTaiwan Semiconductor Manufacturing Co Ltd$246.713.85%Stock Score Locked: Edge Members Only Benzinga Rankings give you vital metrics on any stock - anytime. Unlock RankingsEdge RankingsMomentum84.09Growth94.92QualityN/AValue48.85Price TrendShortMediumLongOverviewAAPLApple Inc$210.670.24%NVDANVIDIA Corp$172.850.86%Market News and Data brought to you by Benzinga APIs

Why Taiwan Semiconductor Stock Was Climbing Today | The Motley Fool

Shares of Taiwan Semiconductor Manufacturing (TSM 3.25%) were moving higher as the chip manufacturing giant seemed to benefit from a broader tailwind in the semiconductor industry after Nvidia said it regained approval to sell its H20 artificial intelligence (AI) chip in China. The H20 is a less powerful version of the AI chips it sells in the U.S. and to other allies. Nvidia is one of Taiwan Semi's biggest customers, and the news set off a broad rally in the sector, with Advanced Micro Devices shares jumping as well. As of 10:44 a.m. ET, TSMC, as the company is also known, was up 3%. In a blog post last night, Nvidia said that CEO Jensen Huang met with President Trump and other policymakers in Washington and received assurance that the company would be granted a license to sell the H20 again to China. That is big news for both the semiconductor industry and U.S.-China relations. Nvidia stock plunged in April when it said it would take an estimated $5.5 billion write-down after it lost the license to sell H20s, dragging the rest of the chip sector down with it. Nvidia is one of TSMC's biggest customers, and a bellwether for the industry, so the reopening of the Chinese market bodes well both for it and the leading chip manufacturer. Taiwan Semi is set to report second-quarter earnings on Thursday, which could prove to be another leg up for the stock. The company has already reported monthly revenue, which was up about 38% in New Taiwanese Dollars in the second quarter, and analysts are expecting earnings per share to rise $1.48 to $2.28. If the company can top that number, the stock, which is already hit an all-time high today, could make another move higher.

TSMC quarterly profit seen soaring to record but Trump tariffs, forex a concern

TAIPEI (Reuters) -TSMC, the world's main producer of advanced AI chips, is expected to post a 52% jump in second-quarter profit to record levels, though U.S. tariffs and a strong Taiwan dollar could weigh on its outlook. Artificial intelligence-related demand continues to boom and while foundry industry revenue will probably grow 17% to 18% this year, sales for TSMC, by virtue of its market-leading position, will likely expand closer to 30%, said Mario Morales, group vice president at research firm IDC. Taiwan Semiconductor Manufacturing Co, the world's largest contract chipmaker and a key supplier to Nvidia and Apple, is forecast to report net profit of T$377.4 billion ($12.9 billion) for the three months through June 30, according to an LSEG SmartEstimate compiled from 21 analysts. SmartEstimates place greater weight on forecasts from analysts who are more consistently accurate. TSMC has already flagged a rise in second-quarter revenue of 38.6%. Any profit result above T$374.68 billion would mark the company's highest-ever quarterly net income and its sixth consecutive quarter of profit growth. It remains unclear just how much U.S. President Donald Trump's tariffs will affect TSMC. Taiwan was threatened with a 32% reciprocal tariff rate in April but has yet to be notified of an updated figure that some countries have received. Trump also said this month that tariffs on semiconductors are likely to come soon. The company said in June that U.S. tariffs were having some indirect impact, noting they can lead to slightly higher prices, which may in turn weigh on demand. In March, TSMC announced a $100 billion investment in the U.S. alongside Trump at the White House, on top of $65 billion pledged for three Arizona plants - two of which have been built. Another key issue is the Taiwan dollar's 12% appreciation against the greenback so far this year. "The exchange rate is a bigger concern as so much TSMC revenue is in USD," said Dan Nystedt, vice-president at TriOrient, an Asia-based private investment firm. TSMC has said a 1% appreciation in the Taiwan dollar typically reduces its gross margin by 0.4 percentage points. In June, the company said the Taiwan dollar's appreciation had shaved more than 3 percentage points off its gross margin. The company is due to report on Thursday and will provide third-quarter guidance during an earnings call scheduled for 0600 GMT. Shares in TSMC surged some 80% last year but have climbed just 3.7% for the year to date on worries about tariffs and unfavourable currency rates. ($1 = 29.2610 Taiwan dollars) (Reporting by Wen-Yee Lee; Editing by Ben Blanchard and Edwina Gibbs)

TSMC posts record quarterly profit on AI demand, but cautious on tariff impact

TAIPEI (Reuters) -TSMC, the world's main producer of advanced AI chips, posted record, forecast-beating quarterly profit on Thursday but warned that future income might be hit by U.S. tariffs, though perhaps not until the fourth quarter. Saying demand for artificial intelligence was getting stronger and stronger, Taiwan Semiconductor Manufacturing Co predicted another leap in sales for the third quarter and hiked its revenue outlook for the full year. It also noted that key client Nvidia had recently been allowed by the U.S. government to resume sales to China of its H20 AI chip. "China is a big market, and my customer can continue to supply the chip to the big market, and it's very positive news for them and in return it's very positive news for TSMC," Chief Executive C.C. Wei told a press conference. But momentum for fourth-quarter earnings could be different. "We are taking into consideration the possible impact of tariffs and a lot of other uncertainties, so we are becoming more conservative," he said, though he added that TSMC had yet to see any changes in customer behaviour so far. A 60% SURGE In the April-June quarter, net profit hit a historic high of T$398.3 billion ($13.5 billion), up 60.7% year-on-year and marking its fifth straight quarter of double-digit growth. That was well ahead of a T$377.9 billion LSEG SmartEstimate. For the current quarter, it predicted a leap in revenue of up to 40% and for the full year, it now estimates revenue growth of around 30% in U.S. dollar terms, up from a previous forecast of "close to the mid-20s". But while sales are roaring, TSMC said the Taiwan dollar's appreciation against the U.S. dollar - around 12% so far this year - would dent margins. Its third-quarter gross margin is expected to fall to between 55.5% and 57.5%, down from 58.6% in the second quarter, also hurt by TSMC's ramp-up of investment in new U.S. and Japanese factories. However, the company stuck to its capital expenditure plan for the year of $38 billion to $42 billion, and Chief Financial Officer Wendell Huang said it was very unlikely such spending would suddenly drop going forward. TSMC announced plans for a $100 billion U.S. investment with U.S. President Donald Trump at the White House in March, on top of $65 billion pledged for three plants in the state of Arizona, one of which is up and running. But Trump has said semiconductor-specific tariffs could come soon. Taiwan was also threatened with a 32% reciprocal tariff rate in April, although it has yet to be notified of an updated figure that some countries have received. Taiwan-listed shares in TSMC surged some 80% last year but have climbed just 5% for the year to date on worries about tariffs and unfavourable currency exchange rates. ($1 = 29.4400 Taiwan dollars) (Reporting by Wen-Yee Lee and Ben Blanchard; Editing by Anne Marie Roantree and Edwina Gibbs)

TSMC posts record quarterly profit on AI demand, but wary about tariffs

TAIPEI (Reuters) -TSMC, the world's main producer of advanced AI chips, posted record, forecast-beating quarterly profit on Thursday but warned that future income might be hit by U.S. tariffs, though perhaps not until the fourth quarter. Saying demand for artificial intelligence was getting stronger and stronger, Taiwan Semiconductor Manufacturing Co predicted another leap in sales for the third quarter and hiked its revenue outlook for the full year. It also noted that key client Nvidia had recently been allowed by the U.S. government to resume sales to China of its H20 AI chip. "China is a big market, and my customer can continue to supply the chip to the big market, and it's very positive news for them and in return it's very positive news for TSMC," Chief Executive C.C. Wei told a press conference. But momentum for fourth-quarter earnings could be different. "We are taking into consideration the possible impact of tariffs and a lot of other uncertainties, so we are becoming more conservative," he said, though he added that TSMC had yet to see any changes in customer behaviour so far. A 60% SURGE In April-June, net profit hit a historic high of T$398.3 billion ($13.5 billion), up 60.7% year-on-year and marking its fifth straight quarter of double-digit growth. That was well ahead of a T$377.9 billion LSEG SmartEstimate. For the current quarter, it predicted a leap in revenue of up to 40% and for the full year, it now estimates revenue growth of around 30% in U.S. dollar terms, up from a previous forecast of "close to the mid-20s". But while sales are roaring, TSMC said the Taiwan dollar's appreciation against the U.S. dollar - around 12% so far this year - would dent margins. Its third-quarter gross margin is expected to fall to between 55.5% and 57.5%, down from 58.6% in the second quarter, also hurt by TSMC's ramp-up of investment in new U.S. and Japanese factories. However, the company stuck to its capital expenditure plan for the year of $38 billion to $42 billion, and Chief Financial Officer Wendell Huang said it was very unlikely such spending would suddenly drop going forward. TSMC announced plans for a $100 billion U.S. investment with U.S. President Donald Trump at the White House in March, on top of $65 billion pledged for three plants in the state of Arizona, one of which is up and running. But Trump has said semiconductor-specific tariffs could come soon. Taiwan was also threatened with a 32% reciprocal tariff rate in April, although it has yet to be notified of an updated figure that some countries have received. TSMC's second-half earnings could also be affected if sales for Apple, another major customer, disappoint, said Allen Huang, a vice president at Taiwan's Mega International Securities Investment Services. Apple typically launches new products in the fourth quarter. "One warning sign is that Apple's sales in China have been soft," he said, adding that this was likely a factor in TSMC's caution about earnings towards the end of the year. Taiwan-listed shares in TSMC surged some 80% last year but have climbed just 5% for the year to date on worries about tariffs and unfavourable currency exchange rates. ($1 = 29.4400 Taiwan dollars) (Reporting by Wen-Yee Lee and Ben Blanchard; Editing by Anne Marie Roantree and Edwina Gibbs)

TSMC quarterly profit seen hitting record, but Trump tariffs, forex a concern

TAIPEI (Reuters) -TSMC, the world's main producer of advanced AI chips, is expected to post a 52% jump in second-quarter profit to record levels on Thursday, though U.S. tariffs and a strong Taiwan dollar could weigh on its outlook. Taiwan Semiconductor Manufacturing Co, the world's largest contract chipmaker and a key supplier to Nvidia and Apple, is forecast to report a net profit of T$377.9 billion ($12.86 billion) for the three months through June 30, according to an LSEG SmartEstimate compiled from 20 analysts. SmartEstimates place greater weight on forecasts from analysts who are more consistently accurate. The company will report the headline profit figure at 0530 GMT which will be followed by an earnings call from 0600 GMT that will include third-quarter guidance. TSMC has already flagged a rise in second-quarter revenue of 38.6%. Any profit result above T$374.68 billion would mark the company's highest-ever quarterly net income and its sixth consecutive quarter of profit growth. It remains unclear just how much U.S. President Donald Trump's tariffs will affect TSMC. Taiwan was threatened with a 32% reciprocal tariff rate in April but has yet to be notified of an updated figure that some countries have received. Trump also said this month that tariffs on semiconductors are likely to come soon. The company said in June that U.S. tariffs were having some indirect impact, noting they can lead to slightly higher prices, which may in turn weigh on demand. In March, TSMC announced a $100 billion investment in the U.S. alongside Trump at the White House, on top of $65 billion pledged for three Arizona plants - two of which have been built. Another key issue is the Taiwan dollar's 12% appreciation against the greenback so far this year. TSMC has said a 1% appreciation in the Taiwan dollar typically reduces its gross margin by 0.4 percentage points. In June, the company said that the strengthening in the Taiwan dollar had shaved more than 3 percentage points off its gross margin. Shares in TSMC surged some 80% last year but have climbed just 5% for the year to date on worries about tariffs and unfavourable currency exchange rates. ($1 = 29.3910 Taiwan dollars) (Reporting by Wen-Yee Lee and Ben Blanchard; Editing by Edwina Gibbs and Muralikumar Anantharaman)

TSMC beats forecasts to post record quarterly profit of $13.5 billion

TAIPEI (Reuters) -TSMC, the world's main producer of advanced AI chips, posted record profit in the second quarter with forecast-beating growth of 60%, and noted that demand for artificial intelligence was getting stronger and stronger. It said it expects another robust leap in revenue for the third quarter but it was cautious about the outlook for later in the year, citing the unknown impact of U.S. tariffs and other uncertainties. Taiwan Semiconductor Manufacturing Co said net profit for April-June climbed to T$398.3 billion ($13.5 billion), its fifth straight quarter of double-digit growth. That was well ahead of a T$377.9 billion LSEG SmartEstimate drawn from 20 analysts. For the third quarter, it expects revenue of $31.8-$33 billion, up from $23.5 billion in the same period earlier and $30 billion in the second quarter. In addition to the potential impact of tariffs, TSMC said it would also be greatly affected by the strengthening of the Taiwan dollar. TSMC, whose customers include Apple and Nvidia, announced plans for a $100 billion U.S. investment with Trump at the White House in March, on top of $65 billion pledged for three plants in the state of Arizona, one of which is up and running. Taiwan-listed shares in TSMC surged some 80% last year but have climbed just 5% for the year to date on worries about tariffs and unfavourable currency exchange rates. ($1 = 29.4400 Taiwan dollars) (Reporting by Wen-Yee Lee and Ben Blanchard; Editing by Anne Marie Roantree and Edwina Gibbs)

TSMC quarterly profit hits record, handily beats market forecast

TAIPEI (Reuters) -TSMC, the world's main producer of advanced AI chips, posted a 60% jump in second-quarter profit to record levels that handily beat market forecasts on Thursday, though U.S. tariffs and a strong Taiwan dollar could weigh on its outlook. Benefiting from surging demand for advanced chips used in artificial intelligence applications, Taiwan Semiconductor Manufacturing Co said net profit for April-June climbed to T$398.3 billion ($13.53 billion), its fifth straight quarter of double-digit growth. That was well ahead of a T$377.9 billion LSEG SmartEstimate drawn from 20 analysts. Trump's trade policies and threats to put tariffs on semiconductors have created much uncertainty for the global chip industry and TSMC, whose customers include Apple and Nvidia. TSMC announced plans for a $100 billion U.S. investment with Trump at the White House in March, on top of $65 billion pledged for three plants in the state of Arizona, one of which is up and running. Taiwan-listed shares in TSMC surged some 80% last year but have climbed just 5% for the year to date on worries about tariffs and unfavourable currency exchange rates. ($1 = 29.4400 Taiwan dollars) (Reporting by Wen-Yee Lee and Ben Blanchard; Editing by Edwina Gibbs and Muralikumar Anantharaman)

TSMC Profit Surges to Record Despite Tariff Cloud

Taiwan Semiconductor Manufacturing Co. delivered record profit in the second quarter, driven by continued robust chip demand for artificial-intelligence applications despite currency headwinds and the drag from U.S. tariff uncertainty. The world's largest contract chip maker said Thursday that net profit jumped 61% from a year earlier to 398.27 billion New Taiwan dollars, equivalent to US$13.57 billion, beating the NT$379.415 billion consensus estimate of analysts in a FactSet poll. That was driven by a 39% rise in revenue to NT$933.79 billion, which slowed slightly from the 42% growth in the first quarter but topped its guidance of between US$28.4 billion and US$29.2 billion. The robust results are the latest sign that the AI wave remains strong and that TSMC, which makes chips for some of the world's largest tech companies, including Nvidia and Apple, will continue to be a key beneficiary of the technological shift. It also reflects the Taiwanese company's resilience, thanks to its edge in advanced chip-making technology. The outlook for TSMC is less certain, however, as Taiwan's largest company has been caught in the crosshairs of President Trump's trade ambitions. It's not yet clear what impact U.S. tariffs will have on TSMC's business. Trump in April threatened a 32% "reciprocal tariff" on Taiwanese goods, but the island has yet to be notified of an updated rate that some trading partners have received. Trump has also warned of tariffs on semiconductors. Taiwan's government said in late June that it had completed a second round of trade negotiations with the U.S. and made "constructive progress." At its annual shareholder meeting last month, Chief Executive C.C. Wei reassured investors that AI demand remained strong and that the chip maker faced limited impact from tariffs as they are typically borne by importers. Wei said he expected TSMC's revenue and earnings to reach new all-time highs this year. Analysts say that uncertainty over Trump's trade policy has only served to supercharge demand for TSMC's chips in recent months as companies rush to secure inventory before duties kick in. Taiwan's exports in May grew at the fastest pace in almost 15 years, with shipments to the U.S. jumping 87%. The U.S. dollar's weakness is another concern for TSMC. The major tech exporter has been facing currency headwinds following the Taiwanese dollar's more than 10% advance this year. The company has said that its operating profit margin would decline by 0.4 percentage point for every 1% depreciation of the U.S. dollar against the New Taiwan dollar.