Daily: TSMC Q2 net profit jumps ~61% yoy
2.5 min read.
Highlights
TSMC income jump. TSMC Q2 net income jumps ~61% yoy, sending the stock up by 2-3%. However, the company’s guidance for upcoming quarters are more cautious, with CEO CC Wei saying that the world’s largest foundry has become “more conservative.” TSMC cited US tariffs uncertainty and forex volatility in both NTD and USD as the cause.
TSMC’s AZ fabs. TSMC speeds up the construction of its Arizona fabs by “several quarters” responding to demand from U.S.-based clients.
ASML’s High-NA EUV. ASML ships its first High-NA EUV system to Intel. The EXE:5200 is the most cutting-edge lithography machine and will be used for Intel’s 14A node.
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1. Policy and Geopolitics
2. Economy, Finance, and Business
2.1
FT (07/17): AI demand powers Taiwan’s TSMC to its highest-ever quarterly profit
Booming AI demand helped Taiwan Semiconductor Manufacturing Company to its highest quarterly net profit, but the world’s largest chip manufacturer gave a more cautious outlook, citing risks from US tariffs and foreign exchange volatility.
TSMC reported NT$398.3bn (US$13.5bn) in net earnings on Thursday for the second quarter, a 60.7 per cent jump year-on-year, along with a 39 per cent jump in revenues to NT$933.8bn. Chief executive CC Wei attributed the record results to “continued robust demand” for AI and high-performance computing applications.
The company said it expected revenues to increase by another 38 per cent year-on-year in the current quarter and raised its growth forecast for the full year to 30 per cent. But that outlook implies a revenue contraction in the final quarter of 2025.
“We become more conservative,” Wei said. TSMC said it was not seeing any change in customer demand so far, but pointed to the risk that US tariff policies could affect consumers and that the weakening US dollar could undermine growth and profitability.
2.2
Nikkei (07/17): TSMC to speed up construction of US chip plants by 'several quarters'
Taiwan Semiconductor Manufacturing Co. says it is speeding up construction of its second and third plants in Arizona "by several quarters" to meet robust demand from U.S.-based customers for smartphone and AI computing chips.
2.3
TrendForce (07/17): NAND Flash Price Hikes Reportedly Set for Q3, with Supply Shortage Likely Stretching Into 2026
As memory giants wind down DDR4 production, DRAM prices are climbing, and now NAND prices are set to follow suit. According to Commercial Times, industry sources predict NAND price hikes in Q3, with products under 512Gb seeing the largest increases.
As per TrendForce, while suppliers shift focus to higher-margin products, the overall supply in circulation has tightened. Looking ahead to Q3, TrendForce projects average NAND Flash contract prices to rise by 5% to 10%.
Commercial Times suggests that the price surge is largely driven by production cuts from major manufacturers like Micron and SanDisk, starting in the second half of 2024. Due to widespread production cuts by manufacturers, NAND supply shortages are expected to persist into the second half of 2025, possibly extending into 2026, the report adds.
3. Technology
3.1
TrendForce (07/17): ASML Confirms First High-NA EUV EXE:5200 Shipment, Reportedly Prepping for Intel’s 14A in 2027
Despite warning that geopolitical risks could stall revenue growth in 2026, ASML still expects strong demand for both EUV and DUV tools this year.
In its latest earnings call, the Dutch chipmaking equipment giant announced it has shipped the first EXE:5200 — a next-gen High-NA EUV system geared for high-volume manufacturing. Notably, ASML anticipates around a 30% jump in its EUV business in 2025.
ASML’s first High-NA EUV customer is confirmed to be Intel, which plans to use the technology for its 14A node, according to tweakers.
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