Benefiting from the continued strong demand for AI chips, global foundry leader TSMC (Taiwan Semiconductor Manufacturing Company) delivered impressive results in Q2 2024, with net profit increasing nearly 61% year-on-year, and both revenue and profit exceeding market expectations, reaching historic highs. However, potential trade risks may still pose challenges to future growth.
TSMC's profits hit a record high, with revenue up 38.65% year-on-year
TSMC announced its Q2 2025 financial report on Thursday, with net profit reaching NT$ 398.27 billion, an increase of 60.7% compared to the same period last year. Revenue was NT$ 933.8 billion, with a year-on-year growth rate of 38.65%, both exceeding market expectations.
According to market forecasts from LSEG SmartEstimates, TSMC's revenue for Q2 was originally estimated at NT$ 931.2 billion, with the actual result slightly higher; while net profit was expected to be NT$ 377.86 billion, which was significantly surpassed by actual data.
These strong financial figures highlight TSMC's key role in the AI era, with high-end process chips driven by strong demand from major clients like Nvidia and Apple.
The AI wave continues to drive chip demand
With the explosive growth of AI applications, demand from AI servers to end devices continues to rise, driving a significant increase in TSMC's shipments of 5nm and 3nm process chips, boosting overall revenue.
Among them, orders from Nvidia are an important growth driver for TSMC. Nvidia's AI accelerators, such as the H100 and H200 chips, are all manufactured using TSMC's advanced processes. Apple's M series and A series chips also rely on TSMC's technology.
However, despite the strong short-term performance, TSMC still faces some potential risks, particularly from geopolitical and trade policy variables.
U.S. restrictions on high-tech exports to China continue to impact TSMC's business, especially as Nvidia and AMD, which have a presence in the Chinese market, are also affected by these restrictions.
However, the situation has slightly changed. This week, Nvidia and AMD announced that they have received permission from the U.S. government to resume shipments to the Chinese market within certain limits, bringing a glimmer of hope to the overall semiconductor industry.
This article 'AI boom drives revenue to new highs! TSMC's Q2 profits soar 61%, far exceeding market expectations' first appeared on Chain News ABMedia.
