TSMC posted strong revenue growth in August 2025, recording approximately NT$335.77 billion (approx. US$11.03 billion). The result marks a 3.9% increase from July and a 33.8% rise compared to the same month last year, according to company data released Wednesday.
Cumulative revenue from January to August totaled NT$2.432 trillion, reflecting a 37.1% year-over-year increase. The sustained growth highlights the company's position as a key supplier in a global semiconductor market driven by high demand for advanced process technologies.
Looking to the second half of 2025, analysts point to several factors that could shape TSMC's financial performance. Continued momentum in artificial intelligence (AI) and high-performance computing (HPC) is expected to remain a significant revenue driver. In the second quarter, 3nm and 5nm technologies contributed 24% and 36% of wafer revenue, respectively, underscoring the company's strength in cutting-edge nodes.
However, headwinds remain. Currency fluctuations are likely to weigh on margins, as the New Taiwan dollar has strengthened against the US dollar. TSMC's finance chief previously noted that every 1% appreciation in the New Taiwan dollar reduces gross margin by about 0.4%. The nearly 8% appreciation seen in the second quarter already cut margins by over 3%.
In addition, overseas expansion costs could pressure profitability. TSMC's multibillion-dollar investment in US fabs, particularly in Arizona, is projected to dilute gross margins by 2% to 4% annually over the next five years, even as it strengthens the company's long-term supply chain resilience.
Trade policy risks also loom, particularly potential US tariff changes that could ripple through global supply chains. While the direct impact on TSMC may be limited, customer demand and broader market dynamics could be affected.
Article edited by Jack Wu
