TSMC June Revenue Falls 17.7%, H1 Up 40% YoY

TSMC, the world's leading semiconductor foundry, has released its revenue report for June 2025, showing NT$263.709 billion in consolidated sales—a 17.7% decrease from May due to foreign exchange losses. However, year-over-year, revenue rose by 26.9%, highlighting the company's sustained momentum in advanced chip manufacturing.

For Q2 2025, TSMC recorded total revenue of NT$933.792 billion, marking an 11.26% quarter-over-quarter increase. The company's first-half revenue reached NT$1.773 trillion, up a remarkable 40% from the same period in 2024.

During its previous earnings call, TSMC projected Q2 revenue in USD terms to be between $28.4 billion and $29.2 billion, with a mid-point growth of 12.75% over Q1—surpassing most market forecasts. The company also maintained its forecast for a strong gross margin of 57–59% and an operating margin of 47–49%, reflecting operational resilience.

However, the New Taiwan dollar's sharp appreciation posed challenges. The company had based its Q2 financial projections on an exchange rate of NT$32.5 to USD$1. As the NT dollar strengthened, monthly revenue in local currency declined in both May and June, impacting profit margins despite meeting top-line targets.

Chairman Mark Liu acknowledged the FX impact during a recent shareholder meeting, emphasizing that maintaining global technology leadership is TSMC’s best strategy to preserve value. He also addressed the indirect impact of tariffs: while TSMC itself is not responsible for import tariffs, they can influence customer demand by raising end-product prices.

Despite macroeconomic uncertainties, demand for AI-related chips remains exceptionally strong. TSMC is actively expanding production capacity to meet client needs and is on track for continued growth throughout 2025. The company expects both annual revenue and operating profit to reach new highs this year.

TSMC will hold its Q2 2025 earnings conference on July 17. Market watchers anticipate limited surprises, with full-year revenue guidance in USD terms likely to remain at a 20–25% increase. Capital expenditure is expected to stay within the previously announced range of $38–42 billion. The current consensus continues to support a 28.7% year-on-year growth forecast for FY2025 revenue in US dollars.