TSMC Revenue Reaches US$39bn Amid AI Chip Demand
The world's largest contract chipmaker has reported second-quarter revenue of T$1.27tn (US$39.62bn), marking a 36% increase and establishing a new record for the Taiwan-based manufacturer.
TSMC, which supplies components to NVIDIA and Apple, experienced particularly strong growth between April and June, according to calculations from Reuters.
The figure exceeded the T$1.264tn (UC$39.44bn) LSEG SmartEstimate drawn from 20 analysts, demonstrating the company's ability to outperform market expectations during the ongoing demand for AI-related technology.
Revenue for June alone reached T$442.68bn (US$13.79bn), representing a 67.9% year-on-year increase and a 6.2% rise compared with the previous month, according to TSMC's revenue statement.
The company, which holds a market capitalisation of US$1.955tn and stands as Asia's most valuable publicly listed company, did not provide forward guidance in its brief release.
TSMC's performance continues to reflect strong demand from computational workload applications, positioning the manufacturer to capitalise on the current technology cycle.
Exceeding financial projections
TSMC had forecast second-quarter revenue between US$39bn and US$40.2bn during its April earnings call, and the actual results came in within this range.
The manufacturer is scheduled to report second-quarter earnings on 16 July, when it will also provide its outlook for the current quarter and remainder of the year.
An LSEG SmartEstimate predicts the company will report a 58.8% year-on-year increase in second-quarter net profit, though TSMC has not confirmed this projection.
Taipei-listed shares of TSMC closed up 1% on Monday ahead of the sales data release, while the broader market closed flat.
The stock has gained 57% year-to-date, tracking alongside broader market performance and reflecting investor confidence in the company's growth trajectory.
- TSMC holds a market capitalisation of US$1.955tn and is the world's largest contract chipmaker
- The company's second-quarter revenue surged 36% year-on-year to hit a record T$1.27tn (US$39.62bn)
Expansion plans in Southern Taiwan
National Science and Technology Council Minister Wu Cheng-wen revealed at a ground-breaking ceremony that TSMC will add two additional advanced chip packaging plants at the Chiayi Science Park.
The development brings the site's total to four facilities, with the location becoming one of TSMC's main centres for packaging advanced chips.
The first plant at the park has already begun manufacturing at scale, whilst the second facility is expected to commence operations shortly.
The ceremony initiated the second stage of construction, which will establish the two additional plants in the Southern Taiwan location.
According to Wu, the entire industrial complex is expected to produce more than NT$300bn (US$9.35bn) annually when completed. He added that all four facilities taken together are to provide more than 9,000 new jobs.
TSMC has been expanding its capabilities for advanced packaging across multiple locations, including through its chip-on-wafer-on-substrate (CoWoS) process technology.
This technology has become necessary for developing the high-performance chips required by companies manufacturing AI hardware.
NVIDIA, one of the leading manufacturers of AI chips, is ordering more than the available supply, illustrating the demand-supply imbalance in this segment.
Arizona operations scaling up
Following a 35.1% revenue increase in the first quarter, TSMC announced in April it would accelerate its multi-billion-dollar expansion at its Arizona semiconductor manufacturing site.
The expansion includes six wafer fabs, positioning the company to serve AI firms requiring cutting-edge manufacturing capabilities.
The move represents part of TSMC's broader strategy to diversify its geographic footprint whilst maintaining its technological leadership in advanced chip production.
The Arizona expansion and Chiayi development together demonstrate TSMC's approach to meeting demand from customers requiring both manufacturing and packaging services.
The company's investments in both locations could support its ability to capture additional market share as AI hardware requirements continue to grow.
With major clients like NVIDIA facing supply constraints, TSMC's capacity expansions could provide the manufacturer with opportunities to strengthen customer relationships and secure long-term contracts.
