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Economic Times
17-07-2025
- 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.
Time of India
17-07-2025
- Business
- Time of India
TSMC reports record profits as AI boom fuels chip demand; Stock expected to open at all-time high
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. Explore courses from Top Institutes in Select a Course Category 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. What's driving the growth? Live Events 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 smartphones. High-performance 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 chips. Despite the AI-led surge, smartphone-related revenue declined slightly to 27 percent, suggesting subdued consumer demand outside of flagship devices like the iPhone. TSMC 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 year-on-year. Concerns remain in place However, 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. The Trump factor 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 discussion. This 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 Arizona. Meanwhile, 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 partners. Still, such restrictions remain a key source of uncertainty for TSMC, which serves as the manufacturing backbone for many of the world's leading chip designers. With over 35 percent of its annual growth already secured in the first half, TSMC appears well-positioned for another strong quarter.
The Star
21-06-2025
- Politics
- The Star
China's top HK official says security will ensure city's success
Director of the Hong Kong and Macau Affairs Office Xia Baolong's comments build on China's emphasis on national security in recent years. -- PHOTO: AFP HONG KONG (Bloomberg): China's top official for Hong Kong affairs said the city needs to prioritize national security to ensure prosperity. The China-imposed national security law helped Hong Kong maintain its status as an international financial hub, Xia Baolong, director of the Hong Kong and Macau Affairs Office in Beijing, said Saturday on his third trip to the semi-autonomous city in three years. "Profound changes are occurring inside and outside Hong Kong. It is necessary to fully implement the One Country, Two Systems principle, guided by national security, to provide favorable safety protection for achieving better development of Hong Kong,' Xia told a government forum marking the fifth anniversary of Beijing's implementation of the 2020 national security law, which silenced dissent in the once-freewheeling territory. His comments build on China's emphasis on national security in recent years, after massive pro-democracy protests roiled the former British colony in 2019. A continuing crackdown on perceived threats and the introduction of supporting legislation has stifled political dissent and led to the imprisonment of dozens of former activists. Earlier this month, Beijing's national security office in the city carried out its first known joint operation with local police to investigate a case of alleged foreign collusion. In the same week, authorities invoked a security law to ban a Taiwanese-made video game they accused of advocating for overthrowing the government. Xia's speech at the forum represents the most public appearance he has made during his five-day trip that began Wednesday, which has included meetings with political and business leaders. He also held discussions with university presidents earlier in the week, in a move seen as reinforcing Beijing's vision for Hong Kong as an innovation and talent hub. Appointed as Beijing's top man in Hong Kong in 2020, Xia's tenure has seen growing integration between the Asian financial hub with the rest of China. He has urged the city to accelerate the development of its so-called Northern Metropolis, a sprawling area bordering the mainland city of Shenzhen. Xia's visit comes as Hong Kong grapples with economic headwinds, buffeted by a slowing Chinese economy and a prolonged property slump. The city is also caught in the crossfire of the US-China trade war, with tariffs imposed by the Trump administration now applying to Hong Kong-made goods, further blurring the lines between the city and mainland China. Still, some observers argue Hong Kong could paradoxically gain from the deteriorating US-China relationship. Having declared the city "over' last February, former Morgan Stanley Asia Chairman Stephen Roach said recently that the territory may benefit because of its unique position as China's most important window to international finance. -- ©2025 Bloomberg L.P.
Straits Times
21-06-2025
- Politics
- Straits Times
China's top HK official says security will ensure city's success
Director of the Hong Kong and Macau Affairs Office Xia Baolong's comments build on China's emphasis on national security in recent years PHOTO: AFP HONG KONG - China's top official for Hong Kong affairs said the city needs to prioritize national security to ensure prosperity. The China-imposed national security law helped Hong Kong maintain its status as an international financial hub, Mr Xia Baolong, director of the Hong Kong and Macau Affairs Office in Beijing, said on June 21 on his third trip to the semi-autonomous city in three years. 'Profound changes are occurring inside and outside Hong Kong. It is necessary to fully implement the One Country, Two Systems principle, guided by national security, to provide favourable safety protection for achieving better development of Hong Kong,' Mr Xia told a government forum marking the fifth anniversary of Beijing's implementation of the 2020 national security law, which silenced dissent in the once-freewheeling territory. His comments build on China's emphasis on national security in recent years, after massive pro-democracy protests roiled the former British colony in 2019. A continuing crackdown on perceived threats and the introduction of supporting legislation has stifled political dissent and led to the imprisonment of dozens of former activists. Earlier this month, Beijing's national security office in the city carried out its first known joint operation with local police to investigate a case of alleged foreign collusion. In the same week, authorities invoked a security law to ban a Taiwanese-made video game they accused of advocating for overthrowing the government. Mr Xia's speech at the forum represents the most public appearance he has made during his five-day trip that began o n June 18 , which has included meetings with political and business leaders. He also held discussions with university presidents earlier in the week, in a move seen as reinforcing Beijing's vision for Hong Kong as an innovation and talent hub. Appointed as Beijing's top man in Hong Kong in 2020, Mr Xia's tenure has seen growing integration between the Asian financial hub with the rest of China. He has urged the city to accelerate the development of its so-called Northern Metropolis, a sprawling area bordering the mainland city of Shenzhen. Mr Xia's visit comes as Hong Kong grapples with economic headwinds, buffeted by a slowing Chinese economy and a prolonged property slump. The city is also caught in the crossfire of the US-China trade war, with tariffs imposed by the Trump administration now applying to Hong Kong-made goods, further blurring the lines between the city and mainland China. Still, some observers argue Hong Kong could paradoxically gain from the deteriorating US-China relationship. Having declared the city 'over' in February 2024 , former Morgan Stanley Asia chairman Stephen Roach said recently that the territory may benefit because of its unique position as China's most important window to international finance. BLOOMBERG Join ST's Telegram channel and get the latest breaking news delivered to you.
Business Times
21-06-2025
- Politics
- Business Times
China's top Hong Kong official says security will ensure city's success
[HONG KONG] China's top official for Hong Kong affairs said the city needs to prioritise national security to ensure prosperity. The China-imposed national security law helped Hong Kong maintain its status as an international financial hub, Xia Baolong, director of the Hong Kong and Macau Affairs Office in Beijing, said on Saturday (Jun 21) on his third trip to the semi-autonomous city in three years. 'Profound changes are occurring inside and outside Hong Kong. It is necessary to fully implement the One Country, Two Systems principle, guided by national security, to provide favourable safety protection for achieving better development of Hong Kong,' Xia told a government forum marking the fifth anniversary of Beijing's implementation of the 2020 national security law, which silenced dissent in the once-freewheeling territory. His comments build on China's emphasis on national security in recent years, after massive pro-democracy protests roiled the former British colony in 2019. A continuing crackdown on perceived threats and the introduction of supporting legislation has stifled political dissent and led to the imprisonment of dozens of former activists. Earlier this month, Beijing's national security office in the city carried out its first known joint operation with local police to investigate a case of alleged foreign collusion. In the same week, authorities invoked a security law to ban a Taiwanese-made video game they accused of advocating for overthrowing the government. Xia's speech at the forum represents the most public appearance he has made during his five-day trip that began on Wednesday, which has included meetings with political and business leaders. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up He also held discussions with university presidents earlier in the week, in a move seen as reinforcing Beijing's vision for Hong Kong as an innovation and talent hub. Appointed as Beijing's top man in Hong Kong in 2020, Xia's tenure has seen growing integration between the Asian financial hub with the rest of China. He has urged the city to accelerate the development of its so-called Northern Metropolis, a sprawling area bordering the mainland city of Shenzhen. Xia's visit comes as Hong Kong grapples with economic headwinds, buffeted by a slowing Chinese economy and a prolonged property slump. The city is also caught in the crossfire of the US-China trade war, with tariffs imposed by the Trump administration now applying to Hong Kong-made goods, further blurring the lines between the city and mainland China. Still, some observers argue Hong Kong could paradoxically gain from the deteriorating US-China relationship. Having declared the city 'over' last February, former Morgan Stanley Asia chairman Stephen Roach said recently that the territory may benefit because of its unique position as China's most important window to international finance. BLOOMBERG
