Taiwan Semiconductor Manufacturing Company (TSMC) delivered strong results for the second quarter, with net profit jumping nearly 61% year-on-year to NT$398.27 billion (around $13.5 billion). The world’s largest contract chipmaker beat analyst expectations, supported by strong demand for AI chips.
Revenue rose 38.65% to NT$933.80 billion (about $31.7 billion), driven by growing orders from major clients such as Nvidia and Apple. These results show how the global demand for advanced processors and AI technologies continues to boost TSMC’s business.
However, the company also faces challenges. U.S. President Donald Trump has recently talked about possible “reciprocal tariffs” on Taiwan, which could include extra duties on semiconductors. Taiwan already faces 32% tariffs announced earlier in April, and trade discussions between the two countries are still ongoing.
TSMC’s China operations have also been affected by U.S. export controls, which limit sales to Chinese companies. These restrictions have impacted both TSMC and its clients like Nvidia and AMD. But there may be some relief ahead—this week, both Nvidia and AMD said they received approvals to restart shipments to China, suggesting U.S.-China trade tensions might be easing.
Overall, while TSMC is riding the wave of AI demand, global trade policies remain a key risk to watch.
