Taiwanese contract chips manufacturer TSMC continues to post huge profits, as it supplies the advanced chips required in the AI spending boom.
The world leader in contract advanced chip manufacturing, with clients including Nvidia, AMD and Apple, TSMC’s stock continues to rise as the demand for advanced chips for AI shows no sign of slowing. The Taiwanese chips giant announced a rise in profits of nearly 61pc for the quarter to June, beating even the most optimistic analyst projections.
TSMC today (July 17) announced profits of $13.5bn, an increase of 60.7pc, as demand for its advance chips continued to grow, to feed the AI boom. It’s second quarter revenue was nearly $31bn, an increase of 44pc year on year, and up 18pc from the previous quarter.
“Our business in the second quarter was supported by continued robust AI and HPC-related demand,” said Wendell Huang, senior VP and chief financial officer at TSMC. “Moving into third quarter 2025, we expect our business to be supported by strong demand for our leading-edge process technologies.”
TSMC says that, based on the company’s current business outlook, management expects the overall performance for third quarter 2025 to be very positive, with revenues expected to be between $31.8bn and $33bn.
The results would seem to confirm that the tech giants are not, as some feared, curtailing their spending on the tech and data centres required for the AI boom.
Billy Leung, investment strategist at Global X ETFs in Sydney told Bloomberg it indicates that “AI optimism” continues. “For investors, TSMC results again ease fears of an AI slowdown,” he said. “Margins hold, demand outlook good, generally reinforces the AI buildout is still well underway.”
Founded in 1987, TSMC (Taiwan Semiconductor Manufacturing Company) like Intel, is one of the few organisations to own its own foundry where it manufactures on a huge scale the chips that most of the tech giants use to power their technology, whether that be smartphones, tablets, automotive or data centres.
According to Investopedia, Apple accounts for about 20pc of TSMC’s annual revenue and the US is TSMC’s largest market by far. Some 50pc of its revenue comes from advanced chips of 5mm or less.
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