Apple supplier TSMC expected to post record 52% jump in Q2 profit

Major Apple chip supplier TSMC, also the world’s main producer of advanced AI chips, is expected to post a 52% jump in second-quarter profit to record levels.
Reuters:
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Taiwan Semiconductor Manufacturing Co, the world’s largest contract chipmaker and a key supplier to Nvidia and Apple, is forecast to report net profit of T$377.4 billion ($12.9 billion) for the three months through June 30, according to an LSEG SmartEstimate compiled from 21 analysts.
TSMC has already flagged a rise in second-quarter revenue of 38.6%. Any profit result above T$374.68 billion would mark the company’s highest-ever quarterly net income and its sixth consecutive quarter of profit growth.
In March, TSMC announced a $100 billion investment in the U.S. alongside President Donald Trump at the White House, on top of $65 billion pledged for three Arizona plants – two of which have been built.
Another key issue is the Taiwan dollar’s 12% appreciation against the greenback so far this year. “The exchange rate is a bigger concern as so much TSMC revenue is in USD,” said Dan Nystedt, vice-president at TriOrient, an Asia-based private investment firm.
TSMC has said a 1% appreciation in the Taiwan dollar typically reduces its gross margin by 0.4 percentage points. In June, the company said the Taiwan dollar’s appreciation had shaved more than 3 percentage points off its gross margin.

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MacDailyNews Take: TSMC is scheduled to report on Thursday and is expected to provide third-quarter guidance during an earnings call scheduled for 0600 GMT.

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