tsmc attracts further investment amid ai boom
taipei, Monday, 11 August 2025.
generation investment management increased its stake in tsmc. this decision followed tsmc’s impressive july revenue report, which showed a 22.5% increase compared to june 2025, and a 25.8% increase compared to july 2024. analysts are optimistic, maintaining a ‘buy’ rating with a target price of $220. tsmc’s revenue for the first seven months of 2025 increased by 37.6% compared to the same period in 2024. this move signals growing confidence in tsmc’s position within the booming semiconductor market.
Financial performance and ai tailwinds
TSMC’s impressive financial results are significantly influenced by the surge in artificial intelligence [5]. The company’s July sales reached NT$323.17 billion (approximately $10.08 billion), marking a 25.8% year-over-year increase and a 22.5% increase compared to the previous month [5]. These figures align with analysts’ expectations of a 25% revenue increase for the third quarter [5]. TSMC’s role as a primary manufacturer for companies like Nvidia and AMD positions it as a key beneficiary of the growing demand for AI chips [5].
strategic investments and u.s. expansion
TSMC is strategically expanding its manufacturing footprint in the United States [5]. The company’s chairman, Wei Zhejia, announced plans in march to increase investment in advanced manufacturing in the U.S. by $100 billion over the next four years [5]. This is in addition to the ongoing $65 billion project in Phoenix, Arizona [5]. Total investment in the U.S. is expected to reach $165 billion [5]. This expansion includes six advanced process factories, two advanced packaging facilities, and a research and development center [5].
tariff exemptions and geopolitical considerations
U.S. President Trump’s recent announcement of a potential 100% tariff on semiconductor imports raises concerns [5]. However, exemptions are expected for companies that have committed to manufacturing in the U.S [5]. Analysts at Bloomberg Intelligence suggest that TSMC and GlobalWafers are likely to benefit from these exemptions due to their investments in U.S. production facilities [5]. Morgan Stanley anticipates that TSMC will receive tariff exemptions or a grace period due to its $165 billion investment in the U.S [5].
market leadership and future outlook
TSMC’s dominance in AI chips and its resilient position in the smartphone semiconductor market solidify its market leadership [5]. The company has revised its full-year revenue growth to 30% [5]. Second-quarter sales for 2025 reached NT$933.79 billion, representing a 38.6% year-over-year increase, with net profits of NT$398.27 billion, a 60.7% increase [5]. Strong demand for HPC AI is driving revenue, with advanced processes expected to be a key contributor in the third quarter [5].