This week, the Taiwan Semiconductor Manufacturing Company, or TSMC, posted a record 61% increase in profits, compared to the same quarter last year. While impressive, it’s not altogether surprising to many analysts.

TSMC , the world's main producer of advanced AI chips, posted record, forecast-beating quarterly profit on Thursday but warned that future income might be hit by U.S. tariffs, though perhaps not until the fourth quarter.

The world's largest contract chip manufacturer has benefited from the megatrend towards AI as it gains from producing advanced processors for clients including Nvidia and Apple. Taiwan Semiconductor Manufacturing Company on Thursday reported a near 61% year-on-year rise in second-quarter profit,

Washington has been concerned China could use Nvidia’s chips to get a jump on the U.S. in high-tech fields, particularly when it comes to artificial intelligence.

Nvidia's CEO Jensen Huang says the technology giant has won approval from the Trump administration to sell its advanced H20 computer chips used for artificial intelligence to China.