Taiwan Semiconductor Manufacturing Co. (TSMC) has recently given a clear message to the tech sector all over the world, the AI boom is not just real but also under rapid growth. TSMC witnessed a massive 39% year-over-year rise in revenue in the June quarter of the year 2025, with revenue totalling NT$934 billion (or around 32 billion dollars). Besides surprising analysts, this outcome also cemented the notion that TSMC is the heart of the global tech and AI supply chain.
Surpassing Expectations
Sales to players such as Nvidia and Apple skyrocketed at TSMC, and the company recorded NT$958 billion in revenue in the quarter, higher than an average analyst estimate of NT$928 billion. The company’s performance is meeting investors who are once again piling into AI-related stocks, pushed by Nvidia by its record valuation (a whopping $4 trillion and counting). C.C.
Wei of TSMC assured investors that there remains a massive demand for AI chips even compared to its supply. He asserted the target set by the faltering company: sales rose with a mid-20% growth in US dollar value despite currency headwinds and uncertainty over the global economy.
The Force Beyond the Statistics
There is an unprecedented demand for highly complex chips because of the AI revolution, and TSMC in the world makes the most advanced semiconductors, unquestionably. Its 3nm and 4nm nodes are becoming more of a backbone in its wafer business, deriving over 20% of revenue, and it has its packaging technology that is facilitating the coming of age of AI accelerators.
Though much of this demand is driven by the explosive growth of Nvidia, TSMC is very dependent on Apple and the smartphone ecosystem more generally to drive a significant portion of its business. This two-pronged strategy, 1) AI chips and 2) consumer electronics, has enabled TSMC to endure weakness in the mobile market and keep overall results healthy.
Investing in the Future
TSMC is not staying put, as the firm has committed to spend a further 100 billion dollars to increase manufacturing capacity in Arizona and major expansions in Japan, Germany, and back home in Taiwan. The investments are meant to meet the gap between the demand and supply of AI chips, which so far has not been well met even by the resources of TSMC.
The high costs, coupled with a slackening US dollar and the increased expenses in overseas expansion, will cause TSMC’s operating margins to be within the lower range of the company guidance, around 47%.
What’s Next?
The global electronics industry is under a shadow caused by the renewed trade war and tariffs on trade by the Trump administration. In spite of TSMC not adjusting its projected sales in 2025, the management is carefully prioritizing the effects of tariffs and currency on end-user demand, especially with products such as iPhones and data center equipment. The demand for AI chips is growing faster than supply, and TSMC is a high-tech leader in advanced manufacturing, which is a key component of the current digital transformation.
In the future, TSMC forecasts 24-26 % growth in revenue in 2025, and sales related to AI may 2x before the year is out. The firm has aggressively invested in the construction of new fabs and packaging plants, which keep it on the edge of the AI-powered semiconductor revolution. In a world where artificial intelligence becomes a more critical aspect that shapes it, TSMC holds a crucial role in delivering the most advanced chips in large quantities. As the AI wave continues to gain momentum, TSMC will likely continue riding it upwards, capping the future of technology, silicon wafer by silicon wafer.
