Taiwan Semiconductor Manufacturing Company (TSMC, Financial) announced a nearly 61% year-over-year profit increase for the second quarter, driven by strong demand for AI chips. The company's revenue reached 933.8 billion New Taiwan dollars (approximately $31.7 billion), surpassing expectations of 931.2 billion. Net profit also exceeded forecasts, hitting 398.2 billion New Taiwan dollars compared to the anticipated 377.8 billion. This marks a record high for TSMC's quarterly net profit.
TSMC's revenue for the June quarter grew by 38.65% year-over-year, also exceeding expectations. Following the announcement, TSMC's stock price rose nearly 6% on the Robinhood trading platform. As the world's largest contract chipmaker, TSMC benefits from the AI trend, producing advanced processors for clients like NVIDIA and Apple.
The main driver of TSMC's growth is the robust demand for AI-related chips, particularly those using cutting-edge process nodes under 7 nanometers. Smaller nanometer sizes in semiconductor technology result in more compact transistor designs, enhancing processing power and efficiency. TSMC reported that advanced chips of 7 nanometers or smaller accounted for 74% of its total wafer revenue this quarter.
