TSMC, one of the world’s largest semiconductor manufacturers, has announced its financial results for the second quarter of 2025. The company experienced its most successful quarter in its history. Revenue in the second quarter increased by 38.6% compared to the same period last year, reaching $30.07 billion. Net profit increased by 60.7% to $12.83 billion.
TSMC is experiencing its most successful quarter in its history.
The majority of revenue came from 7nm and more advanced manufacturing processes. Manufacturing processes in the 5nm class accounted for the largest share at 36%. 3nm processes accounted for 24%, and 7nm generated 14%. These three advanced processes accounted for 74% of TSMC’s wafer revenue.
By usage area, the largest share, at 60%, belongs to the high-performance computing (HPC) category. Smartphones accounted for 27%, while automotive and internet of things (IoT) applications each accounted for 5%.
The HPC category encompasses a wide range of products, from low-power laptop processors to game console chips and large-scale accelerators developed for AI applications. The company emphasized that demand from AI and HPC customers, particularly this quarter, was a key driver of the record results.
AI-based processors are becoming increasingly larger. This increases the amount of silicon used in the production process. TSMC predicts that demand in this area will grow exponentially in the coming period.
In particular, Nvidia’s Rubin Ultra series, which will launch in 2027, is expected to consist of chiplets sized to fit onto four separate masks, and these structures will double TSMC’s silicon demand.
Demand for the company’s current 5nm (N5) and 3nm (N3) production technologies is quite high. AMD and Nvidia are still largely manufacturing on 4nm-class processes. Among the first examples produced with 3nm technology is AMD’s Instinct 355X. As TSMC’s current capacity begins to fall short of meeting this demand, expansion plans have been launched.
The company plans to build 11 new chip factories and four advanced packaging facilities in Taiwan alone. In addition to these investments, TSMC is expected to open more than 15 new factories in total, including existing and planned facilities in Japan, Germany, and the US. This represents both the largest production capacity increase in the company’s history and a scale of expansion unprecedented in the global chip industry.
{{user}} {{datetime}}
{{text}}