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TSMC Surges 26% in July, Fueling AI Chip Demand
8 Aug
Summary
- TSMC reports 26% sales growth in July 2025
- Driven by accelerating demand for AI hardware
- TSMC's revenue up 38% in 2025 so far
In July 2025, Taiwan Semiconductor Manufacturing Co. (TSMC), the world's largest contract chipmaker, reported a 26% growth in sales, reaching NT$323.2 billion (around $10.8 billion). This strong performance is in line with analyst expectations of a 25% increase in TSMC's third-quarter revenue.
The surge in TSMC's sales is largely attributed to the accelerating demand for artificial intelligence (AI) hardware. As the go-to chipmaker for AI providers like Nvidia and AMD, TSMC is benefiting from the rapid growth in the AI sector. Despite the headwind of a stronger Taiwanese dollar, TSMC's revenue is up 38% over its performance in the first seven months of 2024, as the company works to close the gap between supply and elevated demand.
TSMC's Taipei-traded shares reached a record level on Thursday, following the announcement by the Trump administration of new tariffs on chips that would exempt TSMC due to its investment in US production. This development is expected to further strengthen TSMC's position in the market.
Beyond its primacy in the AI chip segment, TSMC also has a significant business providing semiconductors for smartphones, which is on a gradual recovery this year, according to Sony Group Corp. Additionally, Apple Inc. reported its fastest quarterly revenue growth in more than three years, driven by solid demand in China, further bolstering the outlook for TSMC.
