TSMC's half-year revenue surges 40 percent
Taiwan Semiconductor Manufacturing Company is the world's largest contract maker of chips, which have become the lifeblood of the global economy, powering everything from smartphones to missiles.
TSMC's half-year revenue increased 40 percent to NT$1.77 trillion (US$60.8 billion) from a year earlier, the company, whose clients include tech giants Nvidia and Apple, said in a statement.
Chairman and chief executive CC Wei told a recent briefing that TSMC expected to see record earnings this year, as artificial intelligence demand would remain 'very strong'.
The company's sales surged in recent months after US President Donald Trump's global tariff blitz spurred companies to stock up, owing to fears that higher levies were in the pipeline.
Wei told shareholders in June that TSMC's business 'may be affected' if tariffs force up prices and demand for chips falls, but he added: 'Our business will still be very good.'
Taiwan's government said Thursday it has yet to receive a letter on the tariff it would face from the United States, as its delegation is currently negotiating in Washington.
Neighbouring Japan and South Korea are among more than 20 countries receiving letters this week from Trump warning of 'reciprocal' tariffs from August 1.
Taipei has sought to avoid Trump's threatened levies by pledging increased investment in the United States, more purchases of US energy and greater defence spending.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Recorder
9 hours ago
- Business Recorder
EU chief delays retaliation for US tariffs in search of deal
BRUSSELS: EU chief Ursula von der Leyen said Sunday Brussels will keep holding off on hitting back at US steel and aluminium tariffs, as it seeks a deal to ward off broader 30-percent levies. US President Donald Trump on Saturday threw months of painstaking negotiations into disarray by announcing he would hammer the 27-nation bloc with sweeping 30-percent tariffs if no agreement is reached by August 1. 'The United States has sent us a letter with measures that would come into effect unless there is a negotiated solution, so we will therefore also extend the suspension of our countermeasures until early August,' von der Leyen told journalists. 'At the same time, we will continue to prepare for the countermeasures so we're fully prepared,' she added. Macron calls on EU to 'defend European interests' in US tariff talks The European Commission president insisted that the EU has 'always been very clear that we prefer a negotiated solution. This remains the case, and we will use the time that we have now till August 1.' The EU's current suspension of its retaliation over US steel and aluminium tariffs had been set to expire overnight Monday to Tuesday. Brussels has readied duties on US goods worth around 21 billion euros in response to the levies Trump slapped on metal imports earlier this year. But it announced in April it was holding off on those measures to give space to find a broader trade agreement with the Trump administration. 'Since the very beginning, we have worked and now are ready to respond with counter measures. We've prepared for this, and we can respond with countermeasures if necessary,' von der Leyen said.
Express Tribune
19 hours ago
- Express Tribune
Trump slaps 30% tariff on Mexico, EU
Listen to article President Donald Trump on Saturday targeted Mexico and the European Union with steep 30 percent tariffs, dramatically raising the stakes in already tense negotiations with two of the largest US trading partners. Both sets of duties would take effect August 1, Trump said in formal letters posted to his Truth Social platform. The president cited Mexico's role in illicit drugs flowing into the United States and a trade imbalance with the EU as meriting the tariff threat. The EU swiftly slammed the announcement, warning that it would disrupt supply chains, but insisted it would continue talks on a deal ahead of the deadline. Since returning to the presidency in January, Trump has unleashed sweeping tariffs on allies and competitors alike, roiling financial markets and raising fears of a global economic downturn. But his administration is coming under pressure to secure deals with trading partners after promising a flurry of agreements. So far, US officials have only unveiled two pacts, with Britain and Vietnam, alongside temporarily lower tit-for-tat duties with China. The fresh duties for Mexico announced by Trump would be higher than the 25 percent levy he imposed on Mexican goods earlier this year, although products entering the United States under the US-Mexico-Canada Agreement (USMCA) are exempted. "Mexico has been helping me secure the border, BUT, what Mexico has done, is not enough," Trump said in his letter to Mexican President Claudia Sheinbaum. "Starting August 1, 2025, we will charge Mexico a Tariff of 30% on Mexican products sent into the United States." The EU tariff is also markedly steeper than the 20 percent levy Trump unveiled in April, as negotiations with the bloc continue. "Imposing 30 percent tariffs on EU exports would disrupt essential transatlantic supply chains, to the detriment of businesses, consumers and patients on both sides of the Atlantic," European Commission chief Ursula von der Leyen said in a statement, in reply to Trump's letter to her. "We remain ready to continue working towards an agreement by August 1. At the same time, we will take all necessary steps to safeguard EU interests, including the adoption of proportionate countermeasures if required," she added. The EU, alongside dozens of other economies, had been set to see its US tariff level increase from a baseline of 10 percent on Wednesday, but Trump pushed back the deadline to August 1. Since the start of the week, Trump has sent out letters to more than 20 countries with updated tariffs for each, including a 35 percent levy for Canada. A US official has told AFP that the USMCA exemption was expected to remain for Canada. Brussels said Friday that it was ready to strike a deal with Washington to prevent the return of 20 percent levies. The EU has prepared retaliatory duties on US goods worth around 21 billion euros after Trump also slapped separate tariffs on steel and aluminum imports earlier this year, and they are suspended until July 14. European officials have not made any move to extend the suspension but could do it quickly if needed. "Despite all the movement toward a deal, this threat shows the EU is in the same camp of uncertainty as almost every other country in the world," said Josh Lipsky, chair of international economics at the Atlantic Council. He told AFP that the path forward now depends on how the EU responds, calling it "one of the most precarious moments of the trade war so far."
Express Tribune
a day ago
- Express Tribune
US customs duties top $100b for first time
A woman who is seeking asylum has her fingerprints taken by a US Customs and Border patrol officer at a pedestrian port of entry from Mexico to the United States, in McAllen, Texas, US, May 10, 2017. PHOTO: REUTERS Listen to article US customs duty collections surged again in June as President Donald Trump's tariffs gained steam, topping $100 billion for the first time during a fiscal year and helping to produce a surprise $27 billion budget surplus for the month, the Treasury Department reported on Friday. The budget data showed that tariffs are starting to build into a significant revenue contributor for the federal government, with customs duties in June hitting new records, quadrupling to $27.2 billion on a gross basis and $26.6 billion on a net basis after refunds. The budget results are likely to reinforce Trump's view of tariffs as a lucrative revenue source and as a hammer to enforce non-trade foreign policy. He said on Tuesday that "the big money" would start to flow in after he imposes higher reciprocal tariffs on US trading partners on August 1. US Treasury Secretary Scott Bessent said on X that the results show the US is "reaping the rewards" from Trump's tariff agenda. "As President Trump works hard to take back our nation's economic sovereignty, today's (Friday's) Monthly Treasury Statement is demonstrating record customs duties – and with no inflation!" Bessent said. For the first nine months of fiscal year 2025, the customs' take reached records of $113.3 billion on a gross basis and $108 billion on a net basis, nearly double the prior year collections. The government's fiscal year ends on September 30. Based on those results, tariffs have now grown into the fourth-largest revenue source for the federal government, behind individual withheld receipts at $2.683 trillion for the fiscal year, non-withheld individual receipts at $965 billion and corporate taxes at $392 billion. In the space of roughly four months, tariffs as a share of federal revenue have more than doubled to around 5% from about 2% historically. The June budget surplus represented a turnaround from the $71 billion deficit in June 2024. The new tariff-related revenue helped boost total budget receipts last month by 13%, or $60 billion, to $526 billion, a record for that month, the Treasury said. Outlays in June fell 7%, or $38 billion, to $499 billion. But adjusting for calendar shifts of some revenue and benefit payments, it said there would have been a budget deficit of $70 billion in June along with a year-ago adjusted deficit of $143 billion. The overall year-to-date deficit, however, increased 5%, or $64 billion, to $1.337 trillion, as outlays rose for healthcare programmes, Social Security retirement benefits, defence needs, debt interest and the Department of Homeland Security, the Treasury said. Receipts for the first nine months of the fiscal year rose 7%, or $254 billion, to a record $4.008 trillion, driven in part by withheld taxes from higher employment and wages, while outlays grew 6%, or $318 billion, to a record $5.346 trillion. The Treasury's interest costs on the national debt continued to grow, exceeding all other individual outlays at $921 billion for the first nine months of the fiscal year, up 6%, or $53 billion, from the year-ago period. But the Treasury's weighted average interest rate largely had stabilised at 3.3% at the end of June, up two basis points from a year ago, a Treasury official said. Bessent earlier this week suggested a steeper ramp-up in tariff collections, telling a cabinet meeting that calendar year 2025 collections could grow to $300 billion by the end of December. At the June run rate, gross customs collections would hit $276.5 billion in six months' time, which means reaching Bessent's target would require some increases. Ernie Tedeschi, Economics Director of the Budget Lab at Yale University, said it may take more time for the tariff revenue to fully ramp up because businesses and consumers have sought to front-run the duties by buying ahead. Once that effect fades and Trump implements higher reciprocal tariff rates after an August 1 deadline, the Treasury may collect an extra $10 billion in tariffs per month, bringing the total to $37 billion, he said.
