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TSMC Set to Report Record Profit Despite Tariff and Currency Concerns

  • Jul 17, 2025
  • 2 min read

Taiwan Semiconductor Manufacturing Co is expected to post a record second-quarter profit on Thursday, driven by strong demand for advanced AI chips, though concerns over U.S. tariffs and currency fluctuations may cloud its outlook.


Modern building entrance with a large red "tsmc" sign in front. Glass canopy, trees, and a cloudy sky in the background.
Credit: TSMC

The world’s largest contract chipmaker and key supplier to Nvidia and Apple is forecast to report a net profit of T$377.4 billion (USD 12.9 billion) for the quarter ending June 30, according to an LSEG SmartEstimate compiled from 21 analysts.


Modern building labeled "tsmc R&D Center" with trees lining the path. Blue sky and sleek architecture create a futuristic feel.
Credit: TSMC

Any result above T$374.68 billion would mark TSMC’s highest-ever quarterly net income and its sixth consecutive quarter of profit growth.


The company has already reported a 38.6% rise in second-quarter revenue. It will release its headline profit figure at 1:30 p.m. Singapore time, followed by an earnings call at 2 p.m. that will include guidance for the third quarter.


Despite the strong performance, TSMC faces uncertainty from potential U.S. tariffs. In April, Taiwan was threatened with a 32% reciprocal tariff rate, though no updated figure has been confirmed. U.S. President Donald Trump has indicated that semiconductor tariffs are likely to be introduced soon.


TSMC said in June that U.S. tariffs were having some indirect impact, leading to slightly higher prices that could affect demand.


In March, the company announced a USD 100 billion investment in the U.S. alongside Trump at the White House, in addition to USD 65 billion already pledged for three Arizona plants, two of which have been completed.


Another challenge is the Taiwan dollar’s 12% appreciation against the U.S. dollar this year. TSMC has stated that a 1% appreciation typically reduces its gross margin by 0.4 percentage points. In June, the company said the stronger currency had cut more than 3 percentage points from its gross margin.


TSMC shares surged about 80% last year but have risen only 5% so far this year, as investors remain cautious over tariff risks and currency pressures.

  • TSMC expected to post record Q2 profit of T$377.4 billion (USD 12.9 billion)

  • Revenue rose 38.6% in the second quarter

  • U.S. tariffs and Taiwan dollar strength may impact future margins


Source: REUTERS

 
 
 

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