AI boom fuels TSMC’s record $30.1 billion revenue in the second quarter, as it accelerates plans for a major US chip hub with six fabs and a $165 billion investment.
Taiwan Semiconductor Manufacturing Company (TSMC) has reported a promising second quarter, with revenue surging 44.4% year-on-year (YoY) to $30.1 billion, surpassing expectations.
According to reports, the growth was fuelled by sustained demand for AI and high-performance computing (HPC) chips.
Looking ahead, TSMC forecasts third-quarter revenue between $31.8 billion and $33 billion. The company expects its full-year revenue in 2025 to rise nearly 30%.
TSMC is reportedly pressing ahead with its US expansion. On an earnings call, CEO C.C. Wei confirmed plans for a semiconductor manufacturing cluster in Arizona, backed by a total investment of $165 billion. This includes six advanced fabrication plants and a research centre, aimed at supporting demand in smartphones, AI and HPC sectors.
The first Arizona fab, using N4 process technology, began mass production in late 2024. The second, based on 3nm technology, is complete, while construction of the third fab, featuring 2nm and A16 nodes, is underway. The fourth fab will also use N2 and A16 processes, while the fifth and sixth will adopt even more advanced technologies.
Once operational, around 30% of TSMC’s most advanced 2nm capacity will be based in Arizona.
Meanwhile, the Taiwanese chip giant’s strong financials were slightly tempered by foreign exchange fluctuations. CFO Wendell Huang noted that although most revenue is in US dollars, 75% of costs are in Taiwan dollars. This mismatch has pressured margins.
Ramping up overseas fabs in Arizona and Japan has also diluted margins, but TSMC remains confident. The firm aims to improve cost structures through scale and efficiency gains.
Despite economic uncertainties and tariff risks, TSMC anticipates stable customer demand in the second half of 2025. The company remains optimistic about a gradual recovery in non-AI markets next year.
