TSM
TSMC’s scoreboard looks a little unfair
TSMC didn’t just post a decent quarter. It posted the kind of numbers that make competitors stare at the ceiling at 2 a.m. Gross margin hit 67.7%, operating margin came in at 60.3%, revenue jumped 36% from a year ago, and net income surged 77.4%. In other words: the world’s biggest foundry is still printing money while doing the hardest job in semis.
The real flex isn’t just tech
Sure, the company is pushing bleeding-edge manufacturing like it’s on a speedrun. But the more important detail for investors is where the money is coming from. TSMC said 77% of wafer revenue now comes from advanced process technologies, meaning 7-nanometer and below. That’s the AI boom reshaping the business in real time — and giving TSMC pricing power most chipmakers would happily trade a kidney for.
Apple also shows up in the story as a key customer for TSMC’s 2-nanometer process, which already accounted for 3% of wafer revenue in the quarter. The company expects a steep ramp in the third quarter, which is a fancy way of saying the next wave of demand is already lining up at the door.
Why Intel investors should care
This is where Intel’s foundry ambitions run into a brick wall wearing a TSMC name tag. Intel can chase new process nodes, build fabs, and talk up customer wins all day. But TSMC is reminding the market that the real prize is combining leading-edge manufacturing with absurdly strong margins and factory utilization.
That’s the benchmark Intel has to beat. Not just “can you make the chip?” but “can you make it profitably enough to matter?” Big picture: the foundry race isn’t just a technology contest anymore — it’s a business-model cage match, and TSMC keeps landing the heavier punches.