tsmc's july revenue surges to near record, driven by ai chip demand

2025-08-08 tsmc

Taipei, Friday, 8 August 2025.
taiwan semiconductor manufacturing company’s (tsmc) july revenue hit nt$323.1 billion, a 25.8% increase year-on-year. this marks the second-highest monthly revenue in tsmc’s history, slightly behind april’s record. the surge is fueled by strong demand for advanced chips, especially those used in artificial intelligence (ai) applications. tsmc’s dominance in semiconductor manufacturing continues to bolster investor confidence and stock valuation. the company’s cumulative revenue for the first seven months of 2025 reached nt$2.0962 trillion, a 37.6% increase compared to last year.

stock market reaction

The strong revenue figures positively influenced TSMC’s stock. On August 7, 2025, TSMC’s stock in Taiwan closed up by 4.89% at NT$1180, reaching a new high and pushing the company’s market capitalization above NT$30 trillion [5]. In the U.S. pre-market trading, TSMC’s stock rose by nearly 7% following the revenue announcement [5]. Overall, the positive financial results have translated into strong investor confidence and a surge in stock value [1].

manufacturing capacity and expansion

TSMC’s revenue growth is closely tied to its advanced manufacturing capabilities. The company anticipates a 30% growth in US dollar revenue for 2025, driven by the high demand for its 3-nanometer and 5-nanometer process technologies [1]. To meet this demand, TSMC continues to invest in expanding its manufacturing capacity. These investments include significant expansions in the United States, with potential exemptions from proposed tariffs on chips manufactured in the U.S [5].

geopolitical risks and tariff concerns

Despite strong financial performance, TSMC faces geopolitical risks. Chairman Wei, Che-Jia highlighted uncertainties in tariff policies, particularly their impact on consumers and price-sensitive markets [1]. Recent discussions about potential tariffs on semiconductors have created concerns for the company [3]. For example, the U.S. President suggested imposing 100% tariffs on imported chips, but offered exemptions for companies manufacturing in the U.S., which could benefit TSMC’s U.S.-based operations [5].

market leadership and competition

TSMC maintains its leading position in the global semiconductor market through technological advancements and strategic investments [1]. The company’s ability to quickly adapt to market demands, especially in AI, reinforces its competitive edge [3]. While TSMC dominates, other players are emerging. For instance, the second-largest chip foundry in China is experiencing high capacity utilization [3]. TSMC’s continued innovation and capacity expansion are vital to staying ahead in this competitive landscape [1].

financial outlook and projections

TSMC’s Q3 outlook projects revenue between $31.8 billion and $33 billion, representing a potential 8% increase from the previous quarter and a 38% increase year-over-year [2]. However, the expected appreciation of the New Taiwan dollar could negatively impact revenue by approximately 6.6% and gross profit margin by about 2.6 percentage points [1]. Factoring in an exchange rate of NT$29 per US dollar, the average monthly revenue for August and September is projected to range from NT$299.6 billion to NT$316.9 billion [1].

Bronnen

tsmc revenue semiconductor sales