TSMC reported a 61% year-on-year increase in second-quarter profit, reaching a record NT$398.27 bn, surpassing estimates of NT$377.86 bn. Net revenue rose 38.65%, slightly higher than expected, driven by strong demand for AI chips, with 74% of wafer revenue from advanced 7-nanometer or smaller chips. TSMC still faces potential challenges from US trade policies, including 32% tariffs on Taiwan and possible additional semiconductor tariffs.