Wafer foundry. $Taiwan Semiconductor (TSM.US)$ On the eve of announcing the Q2 2025 performance, the stock price has already reached a record high of $237.56, with a Market Cap of $1.23 trillion. After the announcement of the performance, it surged 4.21% in Pre-Market Trading, reaching $247.67, seemingly providing a positive hint for the start of a new trading day.
Taiwan Semiconductor's Q2 performance: the contribution of advanced processes has further improved.
Taiwan Semiconductor's Q2 revenue (in New Taiwan Dollars) increased by 38.6% year-on-year and 11.3% quarter-on-quarter, reaching 933.792 billion New Taiwan Dollars, mainly due to strong demand for industry-leading 3nm and 5nm products, offsetting adverse effects from Exchange Rates. When measured in USD, revenue grew 17.8% quarter-on-quarter, reaching $30.1 billion, surpassing the company’s previous performance guidance.
The gross margin decreased by 0.17 percentage points to 58.62% quarter-on-quarter, mainly due to the dilution of profit margins from Exchange Rates and overseas Business, especially with the upcoming Operation of the Arizona wafer factory. However, improvements in capacity utilization and cost measures partially offset the above impacts, leading to a quarterly increase of 1.12 percentage points in operating profit margin to 49.63%. Earnings per share were 15.36 New Taiwan Dollars, a year-on-year increase of 60.7%, with an ROI of 34.8%.
3-nanometer products accounted for 24% of its second-quarter wafer revenue, while 5-nanometer and 7-nanometer accounted for 36% and 14% respectively. Advanced process products below 7 nanometers accounted for 74% of its wafer revenue.