TSMC(US:TSM) Zheng Quan Shi Bao Wang·2025-07-17 11:20Core Viewpoint - TSMC's Q2 2025 performance shows strong growth driven by AI semiconductor demand, with revenue reaching NT$933.79 billion, a 38.6% year-on-year increase, and net profit at NT$398.27 billion, up 60.7% [1] Group 1: Financial Performance - TSMC's revenue for Q2 2025 was NT$933.79 billion, reflecting a 38.6% year-on-year growth [1] - Net profit for the same period was NT$398.27 billion, marking a 60.7% increase compared to the previous year [1] - The company expects revenue growth to approach 30% year-on-year in 2025, driven by strong AI semiconductor demand [2] Group 2: Business Segments - High-performance computing (HPC) revenue grew by 14% quarter-on-quarter, now accounting for 60% of total revenue [2] - Smartphone revenue increased by 7% quarter-on-quarter, representing 27% of total revenue [2] - Digital consumer electronics (DCE) saw the fastest growth at 30% quarter-on-quarter, but only accounts for 1% of total revenue [2] Group 3: Advanced Process Technology - TSMC's advanced process technology accounted for 74% of wafer revenue in Q2 2025 [2] - The N2 process, utilizing advanced nanosheet technology, is expected to achieve mass production in the second half of 2025, with a 10-15% speed improvement and 22-30% energy efficiency improvement compared to previous generations [4] - The A16 process, deemed most suitable for HPC, is anticipated to begin mass production in the second half of 2026, with an 8-10% speed improvement over N2 [4] Group 4: Market Dynamics and Supply Chain - The demand for AI semiconductors is expected to increase due to the growth in token numbers and AI model usage, leading to higher chip demand [2] - NVIDIA's resumption of H20 supply to China is seen as a positive development, although TSMC has not yet observed significant changes in customer behavior [3] - The company is preparing to meet demand but acknowledges potential uncertainties in customer orders [2][3] Group 5: International Expansion - TSMC is advancing its overseas expansion plans, including factories in Arizona, USA, and Kumamoto, Japan, with an expected annual impact of 2-3% on gross margin over the next five years [5] - The total investment in advanced manufacturing in the USA is projected to reach $165 billion, including a $100 billion increase announced in March [5] - The expansion includes six advanced process factories and two advanced packaging factories, with the first factory already in large-scale production [5]