TSMC Set for Record Q2 Profit Amid Tariff and Currency Headwinds
Taiwan Semiconductor Manufacturing Co. (TSMC), the leading global supplier of advanced AI chips, is set to report its highest-ever quarterly profit for April-June 2025. Analysts estimate a 52% rise in net profit to T$377.4 billion, driven by soaring demand from tech giants like Nvidia and Apple. The chipmaker had already indicated a 38.6% increase in revenue for the quarter, which would mark its sixth straight quarter of profit growth.
Despite this strong performance, concerns loom over the impact of potential U.S. tariffs and a stronger Taiwan dollar. Former U.S. President Donald Trump, who has proposed fresh tariffs on semiconductor imports, had earlier suggested a 32% reciprocal tariff for Taiwan. Though no official rate has been communicated to Taiwan yet, the uncertainty could affect TSMC’s global operations.
TSMC also faces pressure from currency fluctuations. The Taiwan dollar has appreciated by 12% against the U.S. dollar this year, which the company says can significantly reduce profit margins. Even a 1% rise in the Taiwan dollar typically cuts its gross margin by 0.4 percentage points. In June, TSMC stated that recent currency movements had already reduced margins by over 3 percentage points.
Although TSMC shares soared 80% last year, they have only gained 5% so far in 2025 due to concerns around tariffs and exchange rates. The company’s Q2 results and forward guidance will be closely watched.
Source: Live Mint
