Taipei: Taiwan Semiconductor Manufacturing Co. (TSMC) announced on Thursday that it will keep its 2025 sales forecast unchanged, despite uncertainties arising from tariff policies imposed by the Trump administration. During an investor conference, TSMC Chairman C.C. Wei noted that while U.S. tariffs pose market risks, their clients have not altered business relationships, allowing the company to maintain its projection for a 24-26 percent sales increase in 2025.
According to Focus Taiwan, the surge in sales is attributed to the growing popularity of emerging technologies, including artificial intelligence applications. Wei stated that TSMC’s performance is expected to outpace the global pure wafer foundry sector, which is anticipated to see a 10 percent growth in 2025, encompassing IC assembly and testing, and photomasking.
Wei also emphasized the importance of monitoring potential shifts in end-user demand due to U.S. tariffs. Recently, President Trump announced “reciprocal” tariffs targeting countries with trade surpluses with the U.S., including a 32 percent tariff on Taiwan. However, a temporary 90-day pause on these tariffs was declared, with a 10 percent duty applicable to all countries except China. Additionally, Trump indicated plans to scrutinize the semiconductor and electronics supply chain as part of National Security Tariff Investigations.
TSMC has capitalized on robust global demand for AI devices, predicting a doubling of sales for AI-related components by 2025. The company is committed to fulfilling client needs for 3D Chip-on-Wafer-on-Substrate (CoWoS) IC packaging services, anticipating a doubling of CoWoS production capacity this year.
Prior to the conference, TSMC reported record net profit for the first quarter, totaling NT$361.56 billion (US$11.11 billion), a 60.4 percent increase year-on-year. However, a 3.5 percent decline was noted from the previous quarter due to seasonal factors. TSMC’s Chief Financial Officer Wendell Huang revealed expectations for second-quarter consolidated sales to reach US$28.4 billion to US$29.2 billion, driven by demand for advanced 3nm and 5nm processes amid the AI boom.
Despite this optimism, higher production costs in overseas facilities are expected to impact TSMC’s gross margin, projected to range between 57 percent and 59 percent. The company’s first wafer fabs in Arizona, USA, and Kumamoto, Japan, commenced commercial production in 2024, contributing to TSMC’s strategic global expansion.