AI chip demand remains strong, Taiwan Semiconductor's revenue increased by 26% in July
Taiwan Semiconductor announced that its revenue in July reached NT$ 323.2 billion (approximately USD 10.8 billion), a year-on-year increase of 26%, indicating accelerated investment in the AI sector. Despite facing exchange rate pressures, Taiwan Semiconductor's cumulative revenue from January to July increased by 38% compared to the same period in 2024. Analysts expect a 25% revenue growth in the third quarter. Taiwan Semiconductor maintains a significant position in the AI chip and smartphone chip markets, benefiting from the new tariff policies
According to the Zhitong Finance APP, Taiwan Semiconductor Manufacturing Company (TSMC.US), the world's largest chip foundry, announced on Friday that its revenue for July reached NT$323.2 billion (approximately USD 10.8 billion), a year-on-year increase of 26%. This growth trend further confirms that investment in the artificial intelligence (AI) sector is accelerating.
As the preferred chip manufacturer for AI hardware suppliers such as NVIDIA (NVDA.US) and AMD (AMD.US), TSMC's performance aligns closely with analysts' expectations of a 25% revenue growth in the third quarter.
Despite facing exchange rate pressure from the appreciation of the New Taiwan Dollar, TSMC has maintained rapid growth this year, with cumulative revenue from January to July increasing by 38% compared to the same period in 2024. The company is working hard to increase production capacity to meet the continuously high market demand.
After the Trump administration announced tariffs on imported chips (with TSMC exempted due to its investment in factories in the U.S.), TSMC's stock price in the Taiwan stock market hit a record high on Thursday.
Bloomberg Intelligence analyst Charles Shum stated, "TSMC and GlobalWafers are Taiwanese chip manufacturers that have invested billions of dollars in factories in the U.S. and are most likely to benefit from the new tariff policy. In contrast, companies like United Microelectronics Corporation (UMC.US) and ASE Technology Holding Co., Ltd. may face the risk of losing market share to U.S. competitors like GlobalFoundries (GFS.US) and Amkor Technology (AMKR.US) due to their limited localization in the U.S."
In addition to dominating the AI chip sector, TSMC still holds an important position in the smartphone chip market. Sony (SONY.US) pointed out in its earnings call on Thursday that this business segment is gradually recovering this year. Apple's (AAPL.US) latest earnings report also showed that, boosted by demand from the Chinese market, its quarterly revenue achieved the fastest growth in over three years, and it is expected that sales will see a mid-to-high single-digit year-on-year growth this quarter
