TSMC Reports 60.7% Jump in Net Profit for Q2-2025

Taiwan Semiconductor Manufacturing Company Limited (TSMC), a Taiwanese multinational semiconductor contract manufacturing and design company, on Thursday announced that its consolidated revenue stood at $31.75billion, net income of 13.54 billion, and diluted earnings per share of $2.47 per ADR unit for the second quarter ending 30 June 2025.

The second quarter revenue increased 38.6% y-o-y, while net income and diluted EPS both increased 60.7%. Compared with first quarter 2025, second quarter results represented a 11.3% increase in revenue and a 10.2% increase in net income. All figures were prepared in accordance with TIFRS on a consolidated basis, TSMC said.

The second quarter revenue was $30.07 billion, which increased 44.4% year-over-year and increased 17.8% from the previous quarter. Gross margin for the quarter was 58.6%, operating margin was 49.6%, and net profit margin was 42.7%.

In the second quarter, shipments of 3-nanometer accounted for 24% of total wafer revenue; 5-nanometer accounted for 36%, and 7-nanometer accounted for 14%. Advanced technologies, defined as 7-nanometer and more advanced technologies, accounted for 74% of total wafer revenue, TSMC said.

Trade Tensions Back

However, trade tensions are back with the US President Donald Trump already proposing steep ‘reciprocal tariffs’ on imports from Taiwan. Taiwan currently faces a 32% tariff announced in April, and talks between Taipei and Washington are ongoing. Trump also warned earlier this month that more tariffs on semiconductors might be coming.

Wendell Huang, Senior VP and Chief Financial Officer of TSMC, said that their business in the second quarter was supported by continued robust AI and HPC-related demand. Moving into third quarter 2025, TSMC expects business to be supported by strong demand for its leading-edge process technologies.

Based on the company’s current business outlook, management expects the overall performance for third quarter 2025 to be as follows:

The revenue is expected to be between $31.8 billion and $33.0 billion, and based on the exchange rate assumption of 1 US dollar to 29.0 NT dollars, gross profit margin is expected to be between 55.5% and 57.5%. The operating profit margin is expected to be between 45.5% and 47.5%, the company said.