17 July 2025
If you are covering TSMC's latest results, please see the following comment from Ben Barringer, global technology analyst at Quilter Cheviot:
"TSMC delivered a strong beat, with Q2 revenues up 44% year‑on‑year and profits jumping 60% comfortably ahead of expectations. Margins remained solid despite currency headwinds from a stronger Taiwanese dollar.
"The company also raised guidance for Q3, now expecting over 30% year‑on‑year growth, up from previous full‑year expectations of 25%. AI‑related demand continues to be the engine of growth, while non‑AI segments are beginning to recover more steadily.
"Geographic expansion continues at pace, with 6 fabrication plants in Arizona, 2 in Japan, 1 in Germany, and 11 in Taiwan meaning nine out of 20 new fabs are now located outside Taiwan. Capital expenditure remains unchanged, signaling stability and some conservatism given macro and tariffs.
"While shipments of Nvidia’s H20 inference chips to China were temporarily halted, they have now resumed and a full recovery here would provide a meaningful boost. TSMC is increasingly dominant in production and advanced packaging, with demand exceeding their output."
