Latest news with #TaiwanSemiconductorManufacturingCo
Mint
a day ago
- Business
- Mint
TSMC quarterly profit seen soaring to record but Trump tariffs, forex a concern
Analysts expect a 52% surge in second-quarter profit TSMC benefiting more than other chip foundries from AI boom Earnings call at 0600 GMT on Thursday TAIPEI, - TSMC, the world's main producer of advanced AI chips, is expected to post a 52% jump in second-quarter profit to record levels, though U.S. tariffs and a strong Taiwan dollar could weigh on its outlook. Artificial intelligence-related demand continues to boom and while foundry industry revenue will probably grow 17% to 18% this year, sales for TSMC, by virtue of its market-leading position, will likely expand closer to 30%, said Mario Morales, group vice president at research firm IDC. Taiwan Semiconductor Manufacturing Co, the world's largest contract chipmaker and a key supplier to Nvidia and Apple, is forecast to report net profit of T$377.4 billion for the three months through June 30, according to an LSEG SmartEstimate compiled from 21 analysts. SmartEstimates place greater weight on forecasts from analysts who are more consistently accurate. TSMC has already flagged a rise in second-quarter revenue of 38.6%. Any profit result above T$374.68 billion would mark the company's highest-ever quarterly net income and its sixth consecutive quarter of profit growth. It remains unclear just how much U.S. President Donald Trump's tariffs will affect TSMC. Taiwan was threatened with a 32% reciprocal tariff rate in April but has yet to be notified of an updated figure that some countries have received. Trump also said this month that tariffs on semiconductors are likely to come soon. The company said in June that U.S. tariffs were having some indirect impact, noting they can lead to slightly higher prices, which may in turn weigh on demand. In March, TSMC announced a $100 billion investment in the U.S. alongside Trump at the White House, on top of $65 billion pledged for three Arizona plants - two of which have been built. Another key issue is the Taiwan dollar's 12% appreciation against the greenback so far this year. "The exchange rate is a bigger concern as so much TSMC revenue is in USD," said Dan Nystedt, vice-president at TriOrient, an Asia-based private investment firm. TSMC has said a 1% appreciation in the Taiwan dollar typically reduces its gross margin by 0.4 percentage points. In June, the company said the Taiwan dollar's appreciation had shaved more than 3 percentage points off its gross margin. The company is due to report on Thursday and will provide third-quarter guidance during an earnings call scheduled for 0600 GMT. Shares in TSMC surged some 80% last year but have climbed just 3.7% for the year to date on worries about tariffs and unfavourable currency rates.
Forbes
6 days ago
- Business
- Forbes
China Market Update: Real Estate Roars On Policy Support
CLN Asian equities were largely higher despite a new round of Trump tariff love letters as South Korea outperformed. Taiwan Semiconductor Manufacturing Co. (TSMC) reported earnings after the close locally. Thailand was closed for Asarnha Bucha Day, which, according to Perplexity, commemorates the day when the Buddha delivered his first sermon, known as the "Dhammacakkappavattana Sutta" or "Setting the Wheel of Dharma in Motion". Before diving into today's Hong Kong and Mainland China rally, it is worth pointing out that Southbound Stock Connect, the trading platform that allows Mainland investors to buy Hong Kong stocks (and vice versa), accounted for 61% of Hong Kong turnover. Readings above 60% are exceedingly rare, which indicates a lack of foreign investor participation, in my opinion. Despite good relative and absolute performance year-to-date and going back to January of 2024, there continues to be a lack of interest in China stocks. All you will read about today is Nvidia's $4 trillion in market cap, which is despite a host of tailwinds forming for China's equities. Mainland investors appear to have noticed, as Shanghai and Shenzhen broke out above their pre-Liberation day levels. Now, back to today's note. Real estate stocks surged +5.19% in Hong Kong and +2.38% in Mainland China, after the National Development and Reform Commission's (NDRC) Urban and Small Town Reform and Development Center stated four 'major actions of new urbanization with high quality' will be implemented in order to reach 'new urbanization by 2035'. The policies include all of the below, though I bolded one of them in particular: Could the government take over unsold housing inventory to support people moving into cities from agricultural areas? That's what this sounds like. Earlier this year, the Shenzhen Government took over distressed state-owned developer Vanke, a sign of unorthodox government involvement. Not to get too far ahead of ourselves, but, if real estate prices increase, the knock-on effects should be higher for consumer confidence and domestic consumption. Building materials and industrials also gained on the prospect of a high level of new construction. It was an old school value rally, as banks, insurance and coal all had strong days, though I am not certain of the connection to the real estate news. Healthcare was mixed, though Jiangsu Hengrui Pharmaceuticals gained +7.11% on an analyst upgrade. Internet stocks were largely higher, especially versus the downdraft in their US-listed counterparts yesterday. Alibaba gained +0.29% in Hong Kong, versus a decline of -3.85% in New York yesterday. gained +1.30% versus a gain of+1.34% in New York yesterday. Tencent fell -0.20% versus a decline of -0.80% in New York yesterday. NetEase fell -1.46% versus -2.27%. Baidu fell -1.19% versus -1.79%. fell -1.35% versus -3.36%. Bilibili fell -1.5% versus -3.57%. This appears to be American pessimism, rather than American exceptionalism. We wrote yesterday about the potential opportunity in Asian high yield US dollar-denominated bonds, which include Chinese real estate developers. Also helping today's move was distressed developer Logan Group, which gained +20.88% after creditors approved a debt restructuring plan. The Ministry of Commerce (MoC) spokesperson, He Yongqian, did not confirm or deny a question on US Commerce Secretary Lutnick's recent statement that trade negotiators from the US and China would meet soon. He also refrained from confirming whether Nvidia's Jensen Huang would be visiting and meeting with government officials in a rumored China trip next week. One interesting information nugget from yesterday's NDRC update on the 14th Five Year Plan was that China's economy is expected to reach RMB 140 trillion, having grown by RMB 35 trillion during the period covered by the plan. Domestic demand over the last four years has contributed 86.4% of economic growth, as consumption accounted for 56.2% of growth. This likely helps explain the China's tough stance vis-a-vis US tariffs. The Ministry of Human Resources and Ministry of Finance (MoF) both stated that the basic pension payment for retirees will be increased by +2%, after having paid out RMB 6.8 trillion in 2024. The lack of significant support for retirees is a significant positive from a government budget perspective and explains an element of the US budget problem, as well. Live Webinar Join us Thursday, July 10, at 11 am EDT for: $5 Trillion Humanoid Robotics Opportunity – Capitalizing On The Boom Please click here to register New Content Read our latest article: KraneShares KOID ETF: Humanoid Robot Rings Nasdaq Opening Bell Please click here to readChart1 Chart2 Chart3 Chart4 Chart5 Chart6
Yahoo
02-07-2025
- Automotive
- Yahoo
Tesla reportedly preps game-changing upgrade to its vehicles: 'Could be as much as 10 times more capable'
The electric vehicle market is booming, and upgrades within the Tesla universe could bring us closer to an autonomous vehicle future and more powerful cars. According to Not a Tesla App, Tesla is planning to upgrade its Full Self-Driving hardware to 10 times the power of the previous iteration. The new tech, called AI5, may be manufactured by both Samsung and the Taiwan Semiconductor Manufacturing Co. "Tesla is preparing for the production of its new AI5 FSD computer with a performance target of 2,000 to 2,500 trillion operations per second," Not a Tesla App reported. "... During a past earnings call, [CEO] Elon [Musk] claimed AI5 could be as much as 10 times more capable than HW4, which would imply an astronomical 5,000 TOPS." TOPS is the measurement used to assess the notional optimal performance of AI hardware, essentially detailing the capabilities of various artificial intelligence accelerators. While the increase in Tesla's TOPS target would mean faster, smarter cars, gearing the company up to scale up its robotaxi endeavor, it would also require more power. That's where Gigafactories come in, as they house supercomputers to train the AI. Automated cars, or FSD models, are huge for Tesla right now after the company dropped to low points as Musk's activity within the Trump administration led many to bail on the brand and even protest it. The benefits are nearly endless when it comes to switching to an EV. Not only can you save tons of money by not having to refill gas or change oil, but you also won't be pumping pollution from those dirty fuels into the air from your tailpipe. The planet, and your wallet, will thank you. To optimize your savings from EV ownership, solar panels can fuel your vehicle cheaper than using public charging stations or relying on the grid, bringing your monthly cost down to near $0. EnergySage makes it easy to compare quotes from vetted local installers and save up to $10,000 on a solar installation. If purchasing solar panels is out of your budget, Palmetto's LightReach leasing program will install panels for no money down and let you lock in low energy rates. If you were going to purchase an EV, which of these factors would be most important to you? Cost Battery range Power and speed The way it looks Click your choice to see results and speak your mind. Join our free newsletter for good news and useful tips, and don't miss this cool list of easy ways to help yourself while helping the planet.
Business Times
25-06-2025
- Business
- Business Times
TSMC unit to issue US$10 billion of stock to counter forex swings
[TAIPEI] Taiwan Semiconductor Manufacturing Co's overseas unit is set to issue US$10 billion worth of new stock to shore up its forex hedging operations, making its biggest such move to counter a volatile local currency. TSMC Global is poised to issue the shares to help it hedge against forex swings, the company said in a statement. It's the third such deal since 2024, and by far the largest. They occurred during periods when the Taiwan dollar tended to appreciate. The moves grant TSMC Global – the vehicle responsible for managing overseas investments and hedging – more capital flexibility in managing exchange rate risks. Recent gains by the Taiwan dollar have caused worries in Taipei about the economy's heavy reliance on exports. In May, the currency notched its biggest single-day gain since the 1980s, spurring calls from the central bank to curb speculation. 'Generally speaking, the heightened forex volatility would mean that banks may be adjusting their margin requirements,' said Philip McNicholas, Asia sovereign strategist at Robeco based in Singapore. 'Issuing new shares, and bringing in an immediate cash injection, may help companies manage the margin requirements on both existing and new hedges.' TSMC, the main chipmaker to Apple and Nvidia, is by far the island's biggest company and exporter because the majority of its production is domestic. A stronger Taiwan dollar hurts exporters because the US dollars they earn from sales abroad would translate into less of the local currency, or they would need to raise their prices overseas and risk denting demand. In June, chief executive officer CC Wei told shareholders the company's operating margin has fallen several percentage points because of a stronger local currency. BLOOMBERG
Bloomberg
23-06-2025
- Business
- Bloomberg
Huawei's New Laptop Adds to Evidence of Stalled Chip Advance
Huawei Technologies Co. 's latest computer product is powered by a chip manufactured using years-old technology, suggesting US sanctions are still preventing China from developing cutting-edge semiconductor technologies. The processor in the MateBook Fold is built with domestic partner Semiconductor Manufacturing International Corp. 's 7-nanometer technology, according to Canada-based consultancy TechInsights, employing the same process technology adopted in the Mate 60 Pro that stunned US officials two years ago. Industry leader Taiwan Semiconductor Manufacturing Co. is expected to start mass producing 2nm chips, which is three generations ahead of 7nm, later this year.
