Strong Revenue Growth: TSMC reported a second-quarter revenue of TWD 30.1 billion, representing a 17.8% sequential increase. This growth is attributed to robust demand for advanced 3-nanometer and 5-nanometer technologies, despite foreign exchange headwinds.

Gross Margin Challenges: The gross margin decreased slightly to 58.6%, impacted by a 220 basis point hit from unfavorable foreign exchange rates and more than 100 basis points dilution from the ramp-up of overseas fabs, particularly in Arizona. The company anticipates a further decline in gross margin to between 55.5% and 57.5% in Q3 2025.

Capital Expenditure Stability with Future Growth: TSMC maintained its capital expenditure guidance for 2025 at USD 38 billion to 42 billion despite increasing revenue expectations, indicating a cautious approach due to macro uncertainties. Future years may see increased CapEx to support growing demand.