Can TSMC's Record June Sales Steady the Chip Selloff?
Korea Shakes Chip Sentiment
Global technology sentiment weakened after $Samsung Electronics (005930.KR)$ and $SK Hynix (000660.KR)$ sold off sharply in Seoul.
$SK hynix(SKHY)$ faced profit taking following its strong Nasdaq debut, while investors also questioned whether HBM4 shipments had increased as quickly as expected during the second quarter. Rising oil prices and geopolitical tensions added to the broader risk reduction.
The selloff raised a larger question: has semiconductor sentiment weakened faster than the underlying AI demand?
TSMC Delivers a Strong Counter Signal
$Taiwan Semiconductor Manufacturing(TSM)$
The annual growth rate benefited from a weak comparison base, as June 2025 revenue had fallen sharply from the previous month. However, the record absolute revenue and sequential growth still make the June result strong.
Second quarter revenue reached NT$1.270 trillion. That represents approximately 12% sequential growth and 36% annual growth. It also came slightly above the NT$1.264 trillion analyst consensus.
Using TSMC's assumed exchange rate of NT$31.7 per US dollar, quarterly revenue was equivalent to approximately US$40.1 billion, close to the top of the company's US$39.0 billion to US$40.2 billion guidance range.
Can It Lift the Semiconductor Sector?
The result provides a strong signal for advanced logic, AI accelerators, foundry equipment and advanced packaging. It suggests that demand for leading edge wafer capacity remains healthy, even as investors reduce exposure to crowded AI and memory trades.
However, $Taiwan Semiconductor (TSM.US)$ 's revenue does not directly answer the concerns weighing on Samsung, SK Hynix and $Micron Technology (MU.US)$ . It provides limited information about DRAM pricing, HBM4 shipment timing or the distribution of memory profits between suppliers.
TSMC can therefore stabilize semiconductor sentiment, but its monthly sales alone may struggle to reverse the entire selloff.
July 16 Is the Real Test
The more important catalyst will be TSMC's second quarter earnings call on July 16.
Investors will focus on third quarter revenue guidance, AI demand, CoWoS capacity, capital spending, N2 ramp costs and the outlook for gross margins.
A strong outlook could turn today's revenue data into a broader semiconductor rebound. A cautious outlook would leave the market focused on crowded positioning and memory cycle risks.
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