Taiwan Semiconductor Manufacturing Company (TSMC), the world’s leading chip foundry, has recorded a stunning 40% growth in revenue for the first half of 2025. The company announced a total of NT$1.77 trillion (US$60.8 billion) in earnings from January to June 2025, significantly surpassing its performance in the same period last year.

This growth underlines TSMC’s central role in the global semiconductor supply chain and reflects the company’s ability to capitalize on accelerating demand for advanced chips used in artificial intelligence (AI), high-performance computing (HPC), and next-generation consumer electronics.

Strong Second Quarter Highlights Accelerated Performance

For the second quarter alone, TSMC reported revenue of NT$933.8 billion (US$31.9 billion), marking a 38.6% year-on-year increase. The result exceeds both market expectations and internal company forecasts, driven largely by robust client orders from sectors experiencing exponential AI adoption.

The Q2 results reinforce the company’s financial strength and strategic direction amid rising demand for energy-efficient, high-processing-power chips required in AI training models, cloud infrastructure, edge computing, and autonomous systems.

June Sales Show Year-On-Year Growth Despite Monthly Decline

June 2025 revenue alone totaled NT$263.7 billion (US$9.02 billion), representing a 26.9% increase compared to June 2024, despite a 17.7% dip from May 2025. The company attributes this seasonal fluctuation to cyclical purchasing behaviors among major clients. Nevertheless, year-over-year growth in monthly revenue confirms a strong upward trend sustained by long-term global demand.

AI Revolution Powers TSMC’s Financial Momentum

TSMC’s leadership has pointed to a global AI revolution as a key driver of revenue. The company has seen a massive surge in orders from clients like Nvidia, AMD, Apple, and major cloud service providers, all of whom rely on TSMC’s advanced 3nm and 5nm chip fabrication processes for their cutting-edge processors.

As AI deployment expands into mainstream platforms from smartphones and laptops to data centers and autonomous vehicles TSMC remains at the core of this technological evolution, commanding a dominant position in delivering the world’s most sophisticated chips.

TSMC Navigates Currency and Trade Pressures

Despite its strong financial performance, TSMC is also grappling with external headwinds such as the strengthening New Taiwan dollar, which reduces export competitiveness, and growing concerns over possible U.S. tariffs on chip imports.

However, company executives expressed confidence in their ability to absorb these pressures, thanks to their robust order pipeline, diversified client base, and global presence. The firm is also actively expanding manufacturing capacity beyond Taiwan to mitigate geopolitical and logistical risks.

Expansion Plans to Meet Explosive Demand

To meet skyrocketing demand, TSMC has launched aggressive capacity expansion initiatives, including new fabrication plants in the United States, Japan, and Germany. The company’s ongoing investments in Arizona and Kumamoto, as well as advanced R&D in Taiwan, are designed to:

  • Increase global production capacity
  • Localize chip supply chains
  • Support emerging regional semiconductor hubs

This aligns with global calls to reduce dependence on single-location chip manufacturing and build a more resilient technology infrastructure.

Maintaining Global Leadership in Advanced Node Manufacturing

TSMC continues to outpace rivals in advanced node technology. The company is the world’s only commercial manufacturer of 3nm chips at scale, and it is actively developing the 2nm process, expected to enter production in 2026. These technologies are key to supporting AI, quantum computing, and future mobile innovations.

With this unmatched technological edge, TSMC maintains over 50% of the global pure-play foundry market share, a figure expected to rise as demand for high-efficiency chips escalates.

Future Outlook: Record Profits and Double-Digit Growth Expected

Looking ahead, TSMC projects full-year revenue growth in the mid-20% range, anticipating that 2025 will be a record-setting year in terms of both profits and capacity utilization. The company plans to continue reinvesting heavily in R&D, talent acquisition, and next-generation fabs to sustain its leadership through the next decade.

The forecast is supported by:

  • Increasing adoption of AI, AR/VR, IoT, and 5G technologies
  • Strong demand from consumer electronics and automotive sectors
  • Ongoing supply shortages of legacy and advanced node chips

TSMC’s Continued Rise as a Pillar of the Global Digital Economy

TSMC’s latest financial results are a testament to its pivotal role in the digital age. As industries across the globe digitize and automate, the demand for powerful, efficient semiconductors continues to surge. TSMC’s unmatched manufacturing capabilities, coupled with strategic global expansion, place it at the center of future technological innovation.

With AI, robotics, and machine learning redefining human interaction with machines, TSMC is poised not only to benefit from but to drive the transformation of entire industries from healthcare to defense to finance through the chips it produces.