TSMC Reports Record $13.5B Profit on AI Demand Amid Tariff, Currency Headwinds

Taiwan Semiconductor Manufacturing Company (TSMC) reported record Q2 2025 profits of $13.5 billion, driven by surging demand for AI chips, with High-Performance Computing accounting for 59% of sales and advanced nodes (≤7nm) representing 74% of wafer sales. The 3nm node, crucial for AI applications, has rapidly expanded its revenue share, reflecting TSMC's technological leadership and fueling expectations for AI-related revenue to double in 2025 with sustained growth through 2030. Despite these strong fundamentals, TSMC faces significant challenges from U.S. tariffs, which threaten Taiwanese exports, and an appreciating New Taiwan dollar compressing margins. To mitigate these risks, TSMC is investing $165 billion to expand manufacturing in the U.S., Japan, and Germany, aiming to secure tariff exemptions and diversify production. CEO C.C. Wei emphasized the company's strategic expansion as a geopolitical insurance policy, while maintaining premium pricing power due to its dominant market share and advanced technology. Investor confidence remains high, with TSMC raising its 2025 revenue outlook to about 30% growth, underscoring the resilience and momentum of the global AI chip demand.