BTN News: Taiwan Semiconductor Manufacturing Company (TSMC), the world’s largest chip manufacturer, reported a remarkable net profit of 247.85 billion Taiwanese dollars (7.602 billion U.S. dollars) for the second quarter. This represents a 36.3% increase year-on-year, driven by surging demand for artificial intelligence (AI) applications. This impressive figure also exceeded analysts’ expectations and marked a 9.9% rise from the previous quarter, where TSMC’s net profit stood at 225.5 billion Taiwanese dollars (6.919 billion U.S. dollars).
Historically, semiconductor manufacturers experience lower business volumes in the first half of the year, coinciding with the low sales season for mobile phones. However, the rising demand for advanced chips used in AI and high-performance computing has significantly boosted TSMC’s revenue and profit during this period.
In a statement released on Thursday, TSMC announced that its revenue in U.S. dollars increased by 32.8% in the second quarter compared to the same period last year, reaching 20.82 billion dollars. This surpassed TSMC’s revenue forecast for April to June, which was estimated to be between 19.6 and 20.4 billion dollars.
During this quarter, TSMC’s shipments of chips manufactured using their cutting-edge three-nanometer process accounted for 15% of total revenue. Meanwhile, chips made with five and seven-nanometer processes constituted 35% and 17% of the company’s revenue, respectively.
TSMC, which counts major companies like Apple, Nvidia, and AMD among its clients, reported a net profit margin of 36.8% for the second quarter, down 1.2 percentage points from the end of March. Despite this slight decline, the company remains the dominant player in the advanced semiconductor segment.
In the first quarter, TSMC captured approximately 61.7% of the global semiconductor foundry market, far ahead of its closest competitors, South Korea’s Samsung (11%) and China’s SMIC (5.7%), according to estimates by market research firm TrendForce.
Despite these strong financial results, TSMC’s stock has faced a downturn, influenced by recent comments from former U.S. President Donald Trump. Trump accused Taiwan of “stealing” the U.S. chip industry, attributing this to poor leadership in the U.S. “They took almost 100% of our chip industry. I give them credit. That’s because there were stupid people running the country. We should never have allowed that to happen,” Trump stated in an interview with Bloomberg Businessweek.
Following these remarks, TSMC’s shares fell by 2.43% on Thursday, continuing a decline of 2.37% from the previous day. The company has been increasing its investments in the U.S. in recent years due to geopolitical risks and production limitations in Taiwan.
On April 8, the White House announced that TSMC would build a third semiconductor plant in Phoenix, Arizona, raising its total investment in the state to 65 billion dollars. However, the bulk of TSMC’s most advanced production will remain in Taiwan.
TSMC’s strategic expansion in the U.S. aims to mitigate risks and address capacity constraints, ensuring continued leadership in the semiconductor industry. As the demand for AI and high-performance computing grows, TSMC’s advanced technology and substantial market share position it well for future success, despite the ongoing geopolitical challenges and market volatility.
