Taiwan Semiconductor Manufacturing Co. (TSMC) reported consolidated revenue of NT$263.709 billion (approx. US$8.11 billion) for June 2025, down 17.7% from May due to the sharp appreciation of the New Taiwan dollar. However, the figure still marked a 26.9% year-over-year increase, setting a new record for the month of June.
Strong quarterly performance amid currency challenges
For the second quarter of 2025, TSMC's revenue totaled NT$933.792 billion, up 11.26% quarter-over-quarter and 38.65% year-over-year, reaching the upper half of the company's April guidance and setting an all-time high for quarterly revenue. First-half 2025 revenue came in at NT$1.77 trillion, a 40% increase from the same period last year, also a historical high.
In its April earnings call, TSMC forecast second quarter revenue between US$28.4 billion and US$29.2 billion, or NT$923 billion to NT$949 billion based on an exchange rate of US$1 to NT$32.5. The company also projected a gross margin of 57–59% and an operating margin of 47–49%, maintaining its trajectory of sequential growth.
Currency headwinds offset by AI demand surge
Despite the pressure from a rapidly strengthening NT dollar, second-quarter revenue still hit NT$933.79 billion, bolstered by strong AI-related demand and robust customer orders. TSMC attributed this growth momentum largely to the surging need for AI chips and accelerated customer pull-ins.
Since April 1, 2025, the NT dollar has appreciated significantly, from NT$33.196 per USD to briefly below NT$29 in early July, a rise of over 15%. This has had a substantial impact on Taiwan's export-oriented industries, including electronics, finance, and traditional manufacturing. Market observers noted that without currency headwinds, TSMC's second-quarter revenue growth would have been even stronger.
Margin pressure from currency appreciation
At the company's shareholder meeting in June, Chairman C.C. Wei acknowledged that currency fluctuations are a critical factor, directly affecting both profitability and margins. "Every 1% appreciation of the NT dollar reduces our operating margin and gross margin by about 0.4%," he said. With the NT dollar appreciating nearly 8% recently, this alone has cut TSMC's margins by over 3%, amounting to a significant loss given the company's massive revenue scale.
While currency strength poses a serious challenge, Wei noted that tariffs have only an indirect impact on TSMC, since the company primarily exports and importers bear the tariff burden. Nonetheless, he warned that rising tariffs could lead to broader inflation and dampen consumption, which may eventually affect TSMC's shipments and revenue.
Record highs expected for 2025
Still, TSMC emphasized that AI demand remains exceptionally strong. The company is ramping up production capacity to meet customer needs and expects both full-year 2025 revenue and profit to reach new record highs.
Article edited by Jerry Chen
