Taiwan Semiconductor Manufacturing Co (NYSE:TSM) on Friday reported consolidated net revenue of approximately 323.17 billion New Taiwanese dollars (roughly $10.66 billion) for July 2025, up 22.5% quarter-over-quarter, backed by the artificial intelligence frenzy.
The contract chipmaker’s topline rose by 25.8% year-over-year (Y/Y). The company’s revenue for January through July 2025 reached 2.1 trillion New Taiwanese dollars (roughly $69.3 billion), rising 37.6% Y/Y.
Taiwan Semiconductor stock gained 23% year-to-date.
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On August 7, Taiwan Semiconductor jumped ~5% in overnight trade after Taiwanese officials confirmed the chipmaker is exempt from President Donald Trump’s proposed 100% tariffs on semiconductor chips.
National Development Council chief Liu Chin-ching told parliament that Taiwan Semiconductor qualifies for the exemption because it operates U.S. factories, including fabrication plants in Arizona, under its $165 billion investment commitment. The move eases investor concerns as Taiwan Semiconductor supplies chips to major U.S. clients like Apple (NASDAQ:AAPL) and Nvidia (NASDAQ:NVDA).
CEO C.C. Wei has said U.S. tariffs pose “indirect headwinds” but noted that demand for AI chips “consistently outpaces supply,” keeping the company well-positioned despite trade tensions.
On July 17, the chipmaker gained over 4% after it reported second-quarter results that exceeded analyst expectations, fueled by strong global demand for its advanced processors used in artificial intelligence.
Taiwan Semiconductor reported net sales of $30.07 billion, up 38.6% Y/Y and 11.3% Q/Q, beating its guidance range and topping the $30.04 billion consensus. Net income rose 60.7% Y/Yto $2.47 per share, above the $2.37 estimate. Gross margin expanded to 58.6%, and operating margin climbed to 49.6%, driven by high demand for 3-nm and 5-nm technologies, which accounted for 60% of total revenue.
The company guided third-quarter revenue between $31.8 billion and $33.0 billion, with gross margin projected at 55.5% to 57.5% and operating margin at 45.5% to 47.5%, supported by continued strength in leading-edge process technologies.
Key revenue drivers included High-Performance Computing (60% of revenue) and Smartphones (27%), with North America contributing 75% of sales. Management also cited positive momentum from the U.S. government easing certain chip export restrictions to China, enabling Nvidia to resume H20 AI chip sales.
Chairman C.C. Wei highlighted a $100 billion expansion of U.S. manufacturing investment, adding to a prior $65 billion commitment for three Arizona fabs. However, he cautioned that potential U.S. tariffs on Taiwan could temper fourth-quarter momentum despite no immediate change in customer orders.
On August 7, Wedbush analyst Daniel Ives called Apple’s new $100 billion U.S. investment a strategic move to ease Trump administration tensions and secure long-term growth under tariff pressure.
Ives linked the plan to Apple’s partnerships with Taiwan Semiconductor and other chipmakers, projecting over 19 billion U.S.-made chips in 2025. He said the initiative strengthens domestic supply chains and boosts Apple’s standing with the White House, even as large-scale U.S. iPhone production remains unlikely.
Price Action: TSM stock is trading higher by 0.13% to $242.93 premarket at last check on Friday.
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