Taiwan Semiconductor Manufacturing Company (TSMC), the world's largest semiconductor foundry, reported record earnings for the second quarter, fueled by a surge in global demand for artificial intelligence (AI) chips.
On July 16, TSMC announced that its consolidated revenue for the second quarter (April to June) reached NT$1.27 trillion (approximately US$42.1 billion), a 36% increase compared to the same period last year. This figure surpassed analysts' expectations of NT$1.26 trillion and marked a 12% rise from the previous quarter.
Net profit soared 77.4% year-over-year to NT$706.56 billion, significantly exceeding the forecast of NT$632.64 billion. This also represented a 23.4% increase from the prior quarter, with earnings per share (EPS) at NT$27.25. TSMC has now recorded double-digit profit growth for nine consecutive quarters.
In terms of profitability, TSMC's gross margin for the second quarter was 67.7%, with an operating margin of 60.3% and a net profit margin of 55.6%.
Breaking down revenue by process technology, the 2-nanometer process accounted for 3% of wafer sales in the second quarter, while the 3-nanometer process contributed 30%, the 5-nanometer process 33%, and the 7-nanometer process 11%. Overall, advanced processes below 7 nanometers represented 77% of total wafer sales for the quarter.
TSMC counts major U.S. tech companies like NVIDIA and Apple among its clients and is considered a key beneficiary of the ongoing AI boom. As a result, TSMC's stock has risen approximately 59% this year.
* This article has been translated by AI.
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