Taiwan Semiconductor Manufacturing Corp (TSMC) clocked a sharp rise in its second-quarter net profit on Thursday, beating market expectations as the chipmaker continued to benefit from robust artificial intelligence demand.
TSMC’s (TW:2330) (NYSE:TSM) net income rose 60.7% to T$398.27 billion ($13.52 billion) in the three months to June 30. The print was higher than Reuters expectations of T$377.4 billion, and translated to earnings per share of T$15.36 ($2.47 per American Depository Receipt).
Revenue jumped 38.6% to T$933.79 billion, the company said in a statement.
The robust print was driven chiefly by strong AI-fueled demand for TSMC’s 3 nanometer and 5nm wafer technology, which is a key component of advanced AI processors.
This helped offset a smaller revenue contribution from smartphone and device chip sales.
Thursday’s print showed TSMC faced limited earnings headwinds from unfavorable foreign exchange rates, after the Taiwan dollar appreciated sharply against the dollar in the past two months.
TSMC is the world’s largest contract chipmaker, and is a key supplier to AI darling Nvidia (NASDAQ:NVDA) and other major AI server makers. The company clocked a stellar bump-up in earnings and valuation over the past two years, amid rapidly growing AI demand.
But focus is now on the potential impact of U.S. President Donald Trump’s proposed trade tariffs. While the company has committed a total $165 billion to building more production capacity in the U.S., to avoid said tariffs, it remains to be seen just how of an impact the levies will have.
