TSMC June Revenue Soars 26.9% YoY; AI Chip Demand Becomes Primary Growth Engine

TradingKey - According to its latest financial report, TSMC (TSM) reported NT$263.71 billion (US$8.3 billion) in revenue for June 2025, a year-over-year surge of 26.9%, though down 17.7% month-over-month due to the high base from May’s record revenue of NT$320.516 billion.

For the first half of 2025, TSMC’s cumulative revenue exceeded NT$1.773 trillion (US$56 billion), reflecting a 40% year-over-year increase compared to NT$1.266 trillion in the same period of 2024. Second-quarter revenue (April–June) reached NT$934 billion (US$29.4 billion), a 39% year-over-year spike, far surpassing market expectations.

Despite the monthly decline, robust year-over-year and half-year growth rates validate AI chips as the core driver of performance.

Customers such as NVIDIA and Apple are driving strong orders for 3nm/5nm advanced-process chips. TSMC’s 3nm capacity remains fully utilized, with AI accelerators accelerating migration to more advanced N3P/N3X processes. The company expects sustained strong demand for these technologies through 2026.

Bloomberg analyst Charles Shum stated that the strong momentum in demand is expected to effectively offset the weaknesses in its mobile and consumer sectors, helping the company achieve its target of 25% annual revenue growth in U.S. dollars. However, against the backdrop of a weakening dollar, the operating profit margin is anticipated to approach the lower end of the guidance range at 47%.

As of yesterday’s close, TSMC’s stock rose 1.75% to $231.84, marking a 12% gain over the past month.

(Source: TradingKey)