Semiconductor giants TSMC and ASML set to reveal market's health

2025-07-11 general

Taipei, Friday, 11 July 2025.
Investors are keenly awaiting the upcoming earnings reports from TSMC and ASML. These reports are expected to offer a crucial look into the semiconductor market. Experts will analyze TSMC’s production capabilities and ASML’s advanced technology. The reports may also reveal the impact of global events on chip supply. TSMC’s revenue for the first half of the year grew by 40%. This growth is despite a 17.7% drop in monthly revenue for June.

TSMC’s revenue fluctuations and projections

TSMC’s consolidated revenue for June 2025 was approximately 263.71 billion New Taiwan dollars, a decrease of 17.7% from May 2025 but an increase of 26.9% compared to June 2024 [7]. Despite the monthly dip, TSMC’s revenue for the first half of 2025 increased by 40% compared to the same period last year, reaching 1.773 trillion New Taiwan dollars [6]. In April, TSMC reaffirmed its forecast of double-digit growth in US dollar revenue for the entire year, projecting an increase of approximately 25% [6].

Factors affecting TSMC’s performance

The recent decrease in monthly revenue for TSMC is attributed to the appreciation of the New Taiwan dollar, which negatively impacted export revenue [7]. Quarter-end inventory adjustments also contributed to the decline in monthly revenue [7]. Despite these challenges, demand for AI and high-performance computing (HPC) remains stable [7]. TSMC’s second-quarter consolidated revenue reached a record high of 933.79 billion New Taiwan dollars, marking an 11.3% increase from the previous quarter and a 38.6% increase year-over-year [7].

Upcoming earnings call and market outlook

TSMC is scheduled to hold an earnings conference call on July 17, 2025, where the company will provide updated guidance on its third-quarter operations and capital expenditure [7]. Investors will be watching closely to see if TSMC revises its full-year revenue growth forecast in light of recent currency fluctuations and inventory adjustments [alert! ‘It is uncertain if TSMC will revise its forecast’]. The performance of other foundries like United Microelectronics Corporation (UMC) is also being affected by the stronger New Taiwan dollar [7].

Broader implications for the semiconductor industry

The anticipated policy changes in the United States regarding semiconductor exemptions are expected to reshape the valuation system within the technology sector [6]. The semiconductor industry is currently navigating pressures from both technological restrictions and the need for domestic alternatives [6]. This situation is fostering structural changes within the industry, leading to accelerated technological advancements by Chinese companies in critical areas. The proportion of foreign-purchased chips is expected to decrease from 63% in 2024 to 42% in 2025 [6].

Bronnen

earnings reports semiconductor market