Taiwan Semiconductor Manufacturing Company (TSMC), the world’s leading contract chipmaker, has reported a robust 40% year-over-year revenue surge for the first half of 2025, underlining the growing momentum behind artificial intelligence (AI) and high-performance computing (HPC) technologies.
According to the company’s financial disclosure, TSMC generated NT$1.773 trillion (approximately US$60.8 billion) in revenue from January through June, up from NT$1.26 trillion during the same period in 2024.
The growth was driven primarily by accelerated demand for advanced semiconductor nodes, particularly 3nm and 5nm chips, widely used in AI training and inference workloads.
June revenue alone reached NT$263.7 billion (US$9.02 billion), representing a 27.1% increase year-over-year, though it marked a seasonal 17.7% decline from May, consistent with typical inventory and order cycle trends in the industry.
AI Boom Reinforces TSMC’s Leadership
TSMC’s performance reflects a broader industry shift as tech giants ramp up investment in AI infrastructure. The foundry’s advanced chipmaking capabilities have made it a critical partner for leading global firms, including Nvidia, AMD, Apple, and Qualcomm.
“The structural growth in AI-related computing continues to be a powerful revenue catalyst,” said a TSMC spokesperson.
“Our leadership in process technology and scale of manufacturing places us at the heart of this technological transformation.”
Analysts see the gains as more than a short-term spike. “This is a structural inflection point,” said Daniel Lin, a semiconductor industry analyst at Taipei-based Horizons Research.
“AI demand is not just cyclical — it’s fundamentally reshaping the semiconductor supply chain, and TSMC is poised to benefit for the foreseeable future.”
Second Quarter Strengthens Positive Outlook
In addition to the strong first-half results, TSMC revealed that second-quarter revenue climbed to NT$933.8 billion (US$31.9 billion), a 39% increase compared to Q2 2024.
This figure slightly exceeded consensus analyst estimates and positions the company for potentially record-setting annual earnings.
TSMC is scheduled to release its full Q2 earnings report on July 18, which is expected to provide more detailed insight into profitability, capital expenditure, and forward guidance.
Investors will also be watching closely for commentary on geopolitical risks and ongoing U.S.–China trade tensions.
Tariff Risks and Global Expansion
While growth remains strong, TSMC faces increasing pressure from rising trade protectionism. The Biden administration is reportedly considering new tariffs on Chinese-made chips and technologies, a development that could affect cross-border semiconductor flows.
To mitigate such risks, TSMC continues to diversify its manufacturing footprint. The company is investing heavily in new fabs in the United States, Japan, and Germany, including a multibillion-dollar facility in Arizona aimed at supporting domestic chip supply for the U.S. market.
Market Reaction
Following the revenue announcement, TSMC’s stock (NYSE: TSM) gained modestly in pre-market trading. Analysts believe the earnings trajectory and global positioning could support further upside, particularly as AI and edge computing expand into new verticals such as automotive, industrial IoT, and healthcare.
Outlook
With its dominance in advanced node manufacturing and a customer base at the forefront of technological innovation, TSMC is expected to remain a central player in the semiconductor industry’s evolution.
The company’s upcoming earnings call will likely focus on capacity expansion, geopolitical hedging strategies, and updates on 2nm development — seen as the next competitive frontier in chip fabrication.
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