Taiwan Semiconductor Manufacturing Company (TSM, Financial), the world's largest contract chipmaker, reported a remarkable 60.7% year-over-year increase in net profit for the second quarter. This surge, driven by the rising demand in the artificial intelligence sector, surpassed market forecasts and marked a historic high for the company. From April to June, TSMC's net profit rose to 398.3 billion New Taiwan dollars (approximately $13.53 billion), exceeding the expected 377.9 billion New Taiwan dollars.
Despite reaching these financial heights, TSMC faces uncertainties due to former President Trump's trade policies and semiconductor tariffs, which have created challenges for the global chip industry. In March, TSMC announced a $100 billion investment plan in the U.S., including a $65 billion investment for the construction of three factories in Arizona, one of which is already operational.
While TSMC shares on the Taiwan Stock Exchange soared about 80% last year, this year's growth has been modest at only 5%, hindered by tariff concerns and unfavorable currency fluctuations.
