Taiwan Semiconductor Manufacturing Co. (TSMC) reported record second-quarter earnings for 2025, driven by robust demand for artificial intelligence (AI) chips. The company's net profit surged approximately 61% year-over-year to NT$398.3 billion ($13.5 billion), surpassing analyst estimates of NT$376.4 billion. Revenue rose 38.6% year-over-year to NT$933.8 billion ($30.07 billion), also exceeding expectations. TSMC's gross margin improved to 58.6% from 53.2% a year earlier, and operating margin increased to 49.6%. Earnings per share reached $2.47, beating consensus estimates. The company attributed the strong performance to continued growth in AI and high-performance computing (HPC) chip demand, with advanced 3-nanometer technology contributing 24% of wafer revenue. Despite challenges such as foreign exchange volatility, trade uncertainties, and potential U.S. semiconductor tariffs, TSMC raised its full-year 2025 revenue growth forecast to approximately 30% in U.S. dollar terms, up from a prior mid-20% projection. For the third quarter, TSMC guided revenue between $31.8 billion and $33 billion, indicating a year-over-year increase of about 38%. Capital expenditures for the first half of 2025 totaled $19.69 billion, with full-year capex guidance maintained at $38 billion to $42 billion. The strong results reinforce TSMC's position as the world's largest contract chip manufacturer and a key supplier to major technology companies including Nvidia, AMD, Broadcom, and Apple.