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2d ago

TSMC Reports Record Q2 Profit While Flagging Tariff and Currency Risks

Surging AI chip demand propelled earnings with a looming U.S. tariff threat alongside a 12% stronger Taiwan dollar setting up pressure on future margins.

A smartphone with a displayed TSMC (Taiwan Semiconductor Manufacturing Company) logo is placed on a computer motherboard in this illustration taken March 6, 2023. REUTERS/Dado Ruvic/Illustration/File Photo
The logo of Taiwan Semiconductor Manufacturing Company (TSMC) is displayed at its fabrication plant in Kaohsiung, Taiwan, June 7, 2025. REUTERS/Ann Wang/ File Photo
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Overview

  • Second-quarter revenue surged 38.6% as AI chip orders drove full utilization at advanced 3nm and 5nm fabs.
  • The company has committed $165 billion to expand U.S. manufacturing under CHIPS Act incentives, including three Arizona plants.
  • President Trump has threatened a 32% reciprocal tariff on Taiwanese exports, including semiconductors, by August 1.
  • TSMC said existing U.S. tariffs have already pushed up costs slightly and could dampen chip demand.
  • The Taiwan dollar's 12% year-to-date appreciation has shaved more than three percentage points off the company's gross margin.