TSMC breaks records with Q2 revenue surpassing 58 trillion won amid AI chip demand

Taiwanese semiconductor giant TSMC has announced record-breaking financial results for the second quarter, with revenues reaching approximately 58 trillion won ($40 billion). This marks the fifth consecutive quarter of record performance, underscoring the sustained global demand for advanced chips, particularly those powering artificial intelligence applications.

The world's leading contract chip manufacturer reported a 36% year-over-year increase in revenue, surpassing market expectations. Net profit saw a significant surge of 77.4% compared to the same period last year, reaching around 32.5 trillion won. The company's operating profit margin also improved to 60.3%, up from 49.6% a year ago and 58.1% in the previous quarter, indicating enhanced profitability.

This impressive performance is largely attributed to the robust demand for TSMC's cutting-edge manufacturing processes. Chips produced using 7-nanometer technology or smaller accounted for 77% of the company's total wafer revenue. High-performance computing (HPC), which includes AI chips, represented the largest segment of TSMC's business, accounting for 66% of revenue and showing a 20% increase from the previous quarter.

Other key segments included smartphones (22%), the Internet of Things (IoT) (5%), and automotive chips (4%). Bloomberg noted that these results highlight TSMC's indispensable role in producing the majority of advanced chips used in data centers and smartphones. The positive results follow a strong performance from ASML, a key supplier of advanced semiconductor equipment, which also exceeded market forecasts for its second-quarter earnings.