Taiwan's TSMC says second quarter profit up 60%

Core Insights - TSMC reported a 60.7% increase in net profit for Q2, reaching NT$398.3 billion (US$13.5 billion), surpassing analyst expectations [2][3] - The company's revenue for the second quarter rose by 39% year-on-year, also exceeding forecasts [2][3] - TSMC's chairman indicated that demand for chips, particularly for generative AI, is expected to remain robust, leading to an upgraded revenue forecast for the year [3] Financial Performance - TSMC's net profit for the three months ending in June was NT$398.3 billion (US$13.5 billion), a 60.7% increase from the previous year [2] - The second-quarter revenue increased by 39% compared to the same period last year, outperforming expectations [2] Market Dynamics - The demand for chips is driven by the growth of generative AI, which has significantly impacted the global economy [3] - TSMC's positive outlook is supported by Nvidia's decision to resume sales of H20 AI chips to China, following the easing of licensing restrictions by the U.S. [3][4] Strategic Positioning - TSMC is the largest contract chipmaker globally, with major clients including Nvidia and Apple [5] - The company is navigating potential challenges from U.S. tariffs but remains optimistic about its business performance [6]