[News] TSMC's second quarter AI revenue exceeds USD 10b and its share is expected to reach nearly 50%

According to reports from Economy Daily NewsTSMC recently announced that its second quarter revenue reached US$307 billion, raising a new record. In particular, the report highlights that, as institutional investors show, AI-related businesses account for more than a third of the quarter, exceeding US$10 billion for the first time. The figure is expected to continue to rise as annual AI revenues are projected to reach new highs, as the report states.

Institutional investors cited in the report show that in the second quarter, TSMC generated approximately USD 8.788 billion from AI chip manufacturing and advanced packaging, showing a 3.67-fold increase from the previous year. Revenue from high performance computing (HPC) chips totaled US$92.6 billion, up 9.8% from the same period last year, including contributions from AI switches and network connectivity-related ASICs. Includes revenue from AI Edge devices and related segments, AI will account for more than a third of TSMC's quarterly revenue, with share expected to approach soon.

TSMC has raised its full-year revenue growth forecast to around 30%, indicating an increase in the benefits of AI manufacturing capabilities in competitive races. Bloomberg.

As quoted by Economic Daily News, TSMC Chairman and CEO CC Wei said customer demand for AI is still strong despite headwinds such as tariffs and a new Taiwanese dollar valuation.

TSMC defined “AI-related demand” during a revenue call earlier this year to include AI accelerators used in data centers for training and inference such as AI GPUs and AI ASICs. This definition also includes the first time HBM controllers, the report adds.

Furthermore, Economic Daily News reports that while China's rebate programme has increased short-term demand, TSMC considers the impact to be temporary. The company continues to expect a modest recovery across the non-AAI market in 2025, claiming that demand for semiconductors is fundamentally strong and ready for continuous growth.

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(Photo credit: TSMC)