Latest news with #C.C.Wei
The Mainichi
6 days ago
- Business
- The Mainichi
TSMC to start 2nd Japan plant construction later this year
TAIPEI (Kyodo) -- The world's largest contract chipmaker, Taiwan Semiconductor Manufacturing Co., will start construction of its second plant in Japan later this year, the company's chief executive officer said Thursday. C.C. Wei's remark comes as The Wall Street Journal reported earlier this month that the manufacturer plans to again delay the construction of the factory in Kumamoto Prefecture to prioritize investment in its U.S. operations to avoid tariffs. "The construction of our second specialty fab is scheduled to start later this year, subject to the readiness of the local infrastructure," Wei said at a press conference. TSMC has said it aims to build the plant next to its first Japanese plant that started volume production in late 2024 to produce more advanced 6-nanometer chips. The company originally planned to begin construction of the second plant by March but it pushed it back to by the end of this year. The U.S. news outlet reported on July 4 that the company plans further delays.
Malaysian Reserve
6 days ago
- Business
- Malaysian Reserve
TSMC profit surges again after AI drives big jump in sales
TAIWAN Semiconductor Manufacturing Co. reported a better-than-expected 61% jump in profit for the June quarter, bolstering confidence in the momentum of the global AI spending spree. The world's biggest contract chipmaker on Thursday said net income for the period was NT$398.3 billion ($13.5 billion), extending a streak of beating analysts' estimates that dates back to 2021. The company previously posted a 39% surge in revenue. TSMC's performance underscores resilient demand for high-end artificial intelligence chips from the likes of Nvidia Corp. and Advanced Micro Devices Inc., which is outpacing its production capacity. Chief Executive Officer C.C. Wei affirmed in a shareholder meeting in June that AI orders continue to run hot and TSMC anticipates 2025 sales will grow in the mid-20% range in US dollar terms. The company's revenue has grown roughly 40% over the first half of the year, even with a stronger Taiwanese dollar suppressing that figure. It's pledged to spend another $100 billion ramping up manufacturing in Arizona, in addition to an expansion in Japan, Germany and back home. A day before TSMC's results, key chipmaking gear supplier ASML Holding NV triggered anxiety across markets by walking back its growth forecast for 2026. Geopolitics and the global economy are sources of 'increasing uncertainty,' Chief Executive Officer Christophe Fouquet said. Its shares dropped more than 11%. –BLOOMBERG
Mint
6 days ago
- Business
- Mint
TSMC Raises 2025 Outlook in a Big Boost for AI Demand Hopes
(Bloomberg) -- Taiwan Semiconductor Manufacturing Co. raised its outlook for 2025 revenue growth, shoring up investors' confidence in the momentum of the global AI spending spree. The world's biggest contract chipmaker on Thursday forecast sales growth of about 30% in US dollar terms this year, up from mid-20% previously. That reinforced expectations that tech firms from Meta Platforms Inc. to Google will keep spending to build the datacenters essential to artificial intelligence development. Nasdaq stock index futures swung to gains, while top supplier ASML Holding NV gained more than 2%. TSMC's move underscores resilient demand for high-end chips from the likes of Nvidia Corp. and Advanced Micro Devices Inc., which is outpacing its production capacity. Chief Executive Officer C.C. Wei affirmed on Thursday that AI orders still run hot — seeking to dispel persistent speculation that tech firms may curtail spending. While he stressed that underlying AI demand is strengthening, the uncertainty around the Trump administration's tariffs merited caution. This is 'supporting the AI value chain, and AI optimism still holds,' said Billy Leung, investment strategist at Global X ETFs in Sydney. 'For investors, TSMC results again ease fears of an AI slowdown. Margins hold, demand outlook good, generally reinforces the AI buildout is still well underway.' Investors have piled back into AI-linked companies, shaking off a funk that settled in after China's DeepSeek cast doubt on whether the likes of Inc. needed to spend that much money on data centers. Last week, Nvidia became the first company in history to hit a $4 trillion valuation, underscoring investors' renewed enthusiasm for companies like TSMC that are key to building the infrastructure for AI. TSMC wasn't hiking its outlook on news the US is prepared to grant Nvidia licenses to export its H20 AI chip to China, Wei told reporters. While that resumption in sales was positive for the industry, it was too early to quantify the impact, he added. A day before TSMC's results, ASML triggered anxiety across markets by walking back its own growth forecast for 2026. Geopolitics and the global economy are sources of 'increasing uncertainty,' Chief Executive Officer Christophe Fouquet said. Its shares dropped more than 11%. 'Looking ahead to the second half of the year, we have not seen any change in our customers' behavior so far,' Wei said in Taipei. 'However, we understand there are uncertainties and risks' related to potential tariffs. The appreciating Taiwanese dollar was also likely to depress its third-quarter business, Chief Financial Officer Wendell Huang said. Taiwan's dollar has surged more than 11% this year, making it Asia's best performer, as foreign investors snapped up shares and exporters sold the greenback amid concerns the US currency would keep weakening. Huang estimated that every 1% appreciation of the Taiwanese dollar against the greenback will reduce the firm's revenue by 1%. Still, TSMC was sticking with its margin outlook for now. 'Even with the unfavorable foreign exchange rate, we believe the long-term gross margin of 53% and higher remains well achievable,' Huang said. TSMC upgraded its forecast after reporting a better-than-expected 61% jump in net income for the June quarter to NT$398.3 billion ($13.5 billion), keeping intact a streak of beating estimates every quarter since 2021. The company previously posted a 39% surge in revenue. What Bloomberg Intelligence Says TSMC's raised dollar sales-growth guidance (30% from mid-20%) on robust AI-chip demand and strong N3/N5 nodes sales still leaves 2025 sales of $117 billion below consensus' $124.9 billion. Near-term risks persist, with a 10% sequential sales dip in 4Q, we calculate, reflecting management's caution over US tariffs. Sustained Taiwan dollar appreciation will also continue to pressure gross margins. - Charles Shum and Steven Tseng, analysts Click here for the research. Revenue from high-performance computing — which includes chips for servers and datacenters — now accounts for three-fifths of the company's revenue, a major change from when TSMC primarily rode the smartphone market. It remains the main chipmaker to Apple Inc. The company is sticking with plans to spend $38 billion to $42 billion upgrading and expanding capacity this year. TSMC had earlier pledged to spend another $100 billion ramping up manufacturing in Arizona, Japan, Germany and back home in Taiwan. TSMC is 'a timely boost to semiconductor sentiment heading into 2H25, amid broader concerns over sectoral tariffs and policy headwind,' said Allspring Global Investments's Gary Tan. --With assistance from Dasha Afanasieva, Gao Yuan, Winnie Hsu, Vlad Savov, Cindy Wang and Rachel Yeo. (Updates with shares, forex comments from the second paragraph.) More stories like this are available on
Straits Times
7 days ago
- Business
- Straits Times
TSMC raises 2025 outlook in big boost for AI demand hopes
TSMC's move underscores resilient demand for high-end chips from the likes of Nvidia and AMD. Taiwan Semiconductor Manufacturing Co. raised its outlook for 2025 revenue growth, shoring up investors' confidence in the momentum of the global AI spending spree. The world's biggest contract chipmaker on July 17 forecast sales growth of about 30 per cent in US dollar terms in 2025, up from mid-20 per cent previously. That reinforced expectations that tech firms from Meta Platforms to Google will keep spending to build the datacentres essential to artificial intelligence development. Nasdaq stock index futures swung to gains. TSMC's move underscores resilient demand for high-end chips from the likes of Nvidia and Advanced Micro Devices, which is outpacing its production capacity. Chief executive officer C.C. Wei affirmed during a shareholder meeting in June that AI orders continue to run hot – seeking to dispel persistent speculation that tech firms may curtail spending. This is 'supporting the AI value chain, and AI optimism still holds,' said Mr Billy Leung, investment strategist at Global X ETFs in Sydney. 'For investors, TSMC results again ease fears of an AI slowdown. Margins hold, demand outlook good, generally reinforces the AI buildout is still well underway.' Investors have piled back into AI-linked companies, shaking off a funk that settled in after China's DeepSeek cast doubt on whether the likes of Inc. needed to spend that much money on data centres. Last week, Nvidia became the first company in history to hit a US$4 trillion (S$5.14 trillion) valuation, underscoring investors' renewed enthusiasm for companies like TSMC that are key to building the infrastructure for AI. TSMC wasn't hiking its outlook on news the US is prepared to grant Nvidia licenses to export its H20 AI chip to China, Mr Wei told reporters. While that resumption in sales was positive for the industry, it was too early to quantify the impact, he added. Top stories Swipe. Select. Stay informed. Singapore Fatal abuse of Myanmar maid in Bishan: Traffic Police officer sentenced to 10 years' jail Singapore Man charged over manufacturing DIY Kpods at Yishun home; first such case in Singapore Singapore HSA launches anti-vaping checks near 5 institutes of higher learning Singapore $7,000 fine for eatery chain involved in ByteDance food poisoning case Singapore Bicycle wheel-inspired care model used to improve trauma outcomes in central S'pore Life 11 new entries on Singapore's Bib Gourmand list, including three re-entries at Old Airport Road Singapore NEA monitoring E. coli at Sentosa beaches after elevated bacteria levels delay World Aquatics events Singapore 15 under police probe for sharing Singpass credentials used in scams A day before TSMC's results, chipmaking gear supplier ASML Holding triggered anxiety across markets by walking back its own growth forecast for 2026. Geopolitics and the global economy are sources of 'increasing uncertainty,' chief executive officer Christophe Fouquet said. Its shares dropped more than 1 per cent. Mr Wei on July 17 acknowledged the uncertainty stemming from the Trump administration's tariffs-led assault. The appreciating Taiwanese dollar is also suppressing its financials. 'Looking ahead to the second half of the year, we have not seen any change in our customers' behavior so far,' he said in Taipei. 'However, we understand there are uncertainties and risks' related to potential tariffs. TSMC upgraded its forecast after reporting a better-than-expected 61 per cent jump in net income for the June quarter to NT$398.3 billion (S$17.4 billion), keeping intact a streak of beating estimates every quarter since 2021. The company previously posted a 39 per cent surge in revenue. Revenue from high-performance computing – which includes chips for servers and datacentres – now accounts for three-fifths of the company's revenue, a major change from when TSMC primarily rode the smartphone market. It remains the main chipmaker to Apple Inc. The company is sticking with plans to spend US$38 billion to US$42 billion upgrading and expanding capacity this year. TSMC had earlier pledged to spend another US$100 billion ramping up manufacturing in Arizona, Japan, Germany and back home in Taiwan. BLOOMBERG
Economic Times
7 days ago
- Business
- Economic Times
TSMC reports record profits as AI boom fuels chip demand; Stock expected to open at all-time high
Reuters TSMC stock set to open at record high after $12.8B Q2 profit surge, driven by AI chip demand and iPhone orders amid looming US tariffs Taiwan Semiconductor Manufacturing Company (TSMC), the world's largest contract chipmaker, has reported record quarterly earnings as global demand for artificial intelligence (AI) chips continues to grow at an unprecedented pace. Analysts expect the company's share price to surge sharply when markets open, potentially reaching levels never seen before in TSMC's trading history. The company posted a 61 percent rise in net profit in the April–June quarter, reaching NT$398.27 billion (£9.7bn; $12.8bn), while revenue grew by 44 percent year-on-year to $30.07 billion (£23.0bn), surpassing analyst expectations. TSMC's share price rose more than 6 percent in early Thursday(July 17) trading, reaching $175.29, and is on course to hit an all-time high, buoyed by investor optimism over the AI boom and strong demand from major clients such as Nvidia, Apple, and AMD.'The primary driver of growth for TSMC has been the robust demand for AI-related chips, particularly for the leading-edge nodes below 7nm,' said Brady Wang, Associate Director at Counterpoint Research. TSMC's results have been fuelled by two main factors: a rapid global build-out of AI infrastructure and a spike in iPhone chip orders ahead of anticipated US tariffs on Taiwanese-made semiconductors. Advanced chips manufactured on 3nm, 5nm, and 7nm process nodes made up 74 percent of the company's revenue, a reflection of growing demand for more powerful, energy-efficient processors. These chips are essential for AI systems, data centres, and high-end computing (HPC), which includes AI and server chips, contributed 60 percent of TSMC's total revenue, a sharp increase from 52 percent a year earlier. At the same time, the 3nm segment, used in the latest iPhones, climbed to 24 percent of total revenue, marking a notable shift toward premium the AI-led surge, smartphone-related revenue declined slightly to 27 percent, suggesting subdued consumer demand outside of flagship devices like the has raised its full-year revenue growth forecast to 30 percent, up from a previous range of 20–30 percent. It also expects third-quarter revenue to be between $31.8 billion and $33.0 billion, which would represent 38 percent growth executives warned of potential challenges later in the year. CEO C.C. Wei noted that while current demand remains strong, 'uncertainties remain in the second half, particularly around trade policy and customer inventory levels.'There are growing concerns that demand may begin to level off in the final quarter of the year, following months of intense chip stockpiling by major technology companies. A possible saturation of AI-related purchases and broader macroeconomic pressures could dampen growth. TSMC's strong performance comes amid rising geopolitical tension. Earlier this year, US President Donald Trump announced 32 percent tariffs on Taiwanese semiconductors, citing national security concerns and the need to rebalance global trade. Additional tariffs on electronics and advanced components are also under has led to front-loaded ordering behaviour, with companies rushing to place chip orders before tariffs take effect. In response, TSMC is accelerating the construction of its second fabrication facility in US export restrictions on AI chips destined for China remain in place. However, recent diplomatic signals indicate a modest easing of tensions, with Nvidia and AMD confirming they have received US approvals to resume limited shipments to Chinese such restrictions remain a key source of uncertainty for TSMC, which serves as the manufacturing backbone for many of the world's leading chip over 35 percent of its annual growth already secured in the first half, TSMC appears well-positioned for another strong quarter.
