TSMC, the world's largest semiconductor foundry, has reported a record-high net profit for the second quarter of this year, significantly exceeding market expectations, driven by a surge in demand for artificial intelligence (AI) chips.

On July 16, TSMC announced that its net profit for the second quarter (April–June) reached 706.6 billion New Taiwan dollars (approximately 32.5 trillion won), a 77% increase compared to the same period last year.

TSMC explained that this marks the ninth consecutive quarter of double-digit net profit growth.

The performance far surpassed the market consensus of 632.6 billion New Taiwan dollars (approximately 29.1 trillion won), which was compiled by financial data firm LSEG based on forecasts from 18 analysts.

Market observers attribute the results to strong demand for TSMC's 3-nanometer and 2-nanometer process technologies used in AI chips, as well as robust demand for its advanced semiconductor packaging technology, Chip on Wafer on Substrate (CoWoS).

TSMC, which counts companies like Nvidia and Apple among its major clients, plays a critical role in producing advanced semiconductors, particularly those used in Nvidia's AI accelerators.

Bolstered by this, the market capitalization of TSMC, the largest company in Asia by market value, has jumped to approximately 1.97 trillion dollars (approximately 2,921 trillion won). According to Reuters, this is nearly double the market capitalization of its global competitor, Samsung Electronics (approximately 1,492 trillion won).

Previously, on July 13, TSMC announced that its consolidated revenue for the second quarter reached 1.2704 trillion New Taiwan dollars (approximately 58.6 trillion won), a 36% increase year-on-year, marking a record high that also exceeded market forecasts.

(Photo: AP, Yonhap News)