Understanding TSMC’s Record Profits

Would you fancy just one more wafer? TSMC has announced its profits are soaring, aiming for an exceptional $50 billion in 2025. This is primarily fueled by the increasing demand for AI hardware.

Key Financial Details

• TSMC’s Profit: $13.53 billion in Q2 2025.
• Revenue: Over $31 billion for the same period.
• AMD’s Figures: $709 million in profit from $7.4 billion in revenue, which is roughly 1/10th of revenue.
• Nvidia’s Ratios: Last reported revenue of $44 billion with profits nearing $19 billion.

Reasons Behind High Graphics Card Prices

Despite the profitable landscape of TSMC and Nvidia, it remains a challenge to explain the high prices of PC graphics cards. This is mostly credited to TSMC’s role as the main chip manufacturer for major players like Nvidia and AMD.

Additionally, as the evolution towards more advanced and costlier wafer technology continues (e.g., the introduction of N3 and N2 nodes), the end-user price tends to rise as well.

Conclusion

The intertwining dynamics of TSMC’s extraordinary profits and the economic implications for graphics card pricing will be crucial to observe as we progress through 2025.