TSMC sales surge in first half of 2025, riding wave of AI chip demand

Taiwan Semiconductor Manufacturing Co., which has seen a recent executive shakeup at its Arizona operations amid its record-setting $165 billion investment in its growing chip factory campus in north Phoenix, has reported sales that exceeded Wall Street expectations as it rides a wave of customer interest in AI processors.

Ahead of its detailed second quarter earnings release set for July 17, TSMC (TSM: NYSE) said Thursday in a regulatory filing that it had monthly June sales of $9 billion, up nearly 27% from the year-earlier period, but down 17% from May.

Through the first six months of 2025, TSMC reported sales of $60.5 billion, a 40% gain from the comparable period a year earlier. Barron’s reported that monthly totals for TSMC’s second quarter added up to $31.93 billion, slightly ahead of analysts’ estimates, up 39% from a year earlier and slightly cooler than the 42% year-over-year growth in Q1.

TSMC has taken on a role as the gorilla in the room when it comes to high-end artificial intelligence-focused chip manufacturing, amid Intel Corp.‘s continued technology retooling and layoffs.

Barron’s said TSMC expects AI-related chip revenue to double in 2025 and grow at a mid-40% annual growth rate for the next five years, noting that Needham analyst Charles Shi recently reiterated a buy rating on the shares, boosting his price target from $225 to $270 per share.

TSMC shares dipped slightly on Thursday to close at $229.76.

President Trump still hints at chip tariffs

Barron’s also noted that, so far this year, TSMC and other chipmakers have been immune from tariffs. However, President Trump hinted earlier this week that he is eyeing new tariffs on imported semiconductors, without offering any specifics.

Last week, the Wall Street Journal reported that TSMC has said it plans to focus on a more expedient timeline building out its multi-factory Arizona site, that could delay work on a project in Japan as a result.

President Trump has previously stated that he was at the center of negotiations when TSMC announced in March that it would increase its $65 billion Arizona investment to $165 billion, sparking some speculation that it – and other foreign chipmakers that have recently doubled down on U.S. project investments – could be exempt from such tariffs.

In June, Trump administration officials said they were seeking to renegotiate some CHIPS Act funding deals set up during Joe Biden’s presidency, but praised TSMC for its new commitment to U.S. manufacturing.

Last week, TSMC said that Rick Cassidy stepped down as director and chairman of Taiwan Semiconductor Manufacturing Co.’s Arizona subsidiary, with TSMC’s Arizona president being named to replace him as director.