Taiwan Semiconductor Manufacturing Co. posted record second-quarter results, with net profit climbing 60.7% from a year earlier to NT$398.3 billion (about US$13.5 billion) on revenue of NT$933.8 billion (US$30.1 billion). Gross margin widened to 58.6% and operating margin reached 49.6%, both comfortably ahead of market expectations, as demand for high-performance chips used in artificial-intelligence applications continued to surge. The world’s largest contract chipmaker credited strong orders from customers such as Nvidia and Apple for the performance. Advanced 3-nanometre and 5-nanometre technologies accounted for roughly 60% of wafer sales, underscoring TSMC’s dominant position in cutting-edge manufacturing. Looking ahead, the company forecast third-quarter revenue of US$31.8 billion to US$33 billion, above analyst estimates, though it expects gross margin to ease to 55.5%–57.5% as the Taiwan dollar’s 12% appreciation and overseas factory ramp-ups squeeze profitability. Capital spending for 2025 remains unchanged at US$38 billion–US$42 billion. TSMC also lifted its 2025 sales outlook, projecting about 30% growth in U.S. dollar terms versus a prior mid-20% target, citing “stronger and stronger” AI demand. Management said it is monitoring the potential impact of new U.S. semiconductor tariffs and other macro risks but has not yet seen changes in customer ordering patterns.