TSMC Announces Record Q2-2025 Revenue Amidst Currency and Tariff Slump

Taiwan’s premier semiconductor foundry, TSMC, reported a consolidated revenue of NTD $263.709 billion (approximately US$8.11 billion) for June 2025, reflecting a 17.7% decline from May due to the sharp appreciation of the New Taiwan dollar. Despite this, the figure marked a 26.9% YoY increase, setting a new June record. For the second quarter of 2025, TSMC achieved revenue of NTD $933.792 billion, up 11.26% QoQ and 38.65% YoY, hitting the upper end of its April 2025 guidance and establishing a quarterly record. 1H-2025 revenue reached NTD $1.77 trillion, a 40% surge from the previous year, which is also a historical peak. In its April earnings call, TSMC forecasted second-quarter revenue between USD $28.4 billion and USD $29.2 billion (NTD $923 billion to NTD $949 billion), alongside a gross margin of 57-59% and an operating margin of 47-49%.

The rapid strengthening of the Taiwan Dollar, which appreciated over 15% from NTD $33.196 to briefly below NTD $29 per USD since April 2025, significantly impacted TSMC’s margins and Taiwan’s export-driven industry, mainly electronics and manufacturing. TSMC Chairman C.C. Wei noted at the June shareholder meeting that a 1% NT dollar appreciation reduces operating and gross margins by about 0.4%, with the recent 8% rise cutting margins by over 3%. Despite this, TSMC’s Q2 revenue of NTD $933.79 billion was driven by robust AI GPU demand and increased orders for large die-size chips (more wafers since fewer chips per wafer), mitigating currency pressures. While tariffs indirectly affect TSMC as importers bear the cost, Wei cautioned that rising tariffs could spur inflation and reduce consumption, potentially impacting shipments. Despite all these, TSMC remains optimistic, fueled by strong AI GPU demand. The company projects record-high revenue and profit for 2025.