Why the world's largest contract chipmaker isn't concerned about AI chip competition
As competition heats up in the AI chip race for graphic processing units and application-specific integrated circuits, Taiwan Semiconductor Manufacturing Company isn't bothered.
As the world's largest contract chipmaker, it makes them all, said CEO CC Wei.
"I look left and right, and no matter how I look at it, the orders are all from TSMC," Wei told local media on Tuesday after a shareholder meeting in the northern Taiwanese city of Hsinchu.
Last month, TSMC reported a 42% rise in the first quarter revenue from a year ago. It was the chip giant's fastest pace of growth since 2022.
Instead of competitors, it's the indirect impact of President Donald Trump's tariffs that concerns TSMC's CEO.
"Tariffs have some impact on TSMC, but not directly. That's because tariffs are imposed on importers, not exporters," Wei said.
However, tariffs can lead to slightly higher inflation, which may damp end demand and impact TSMC.
"I am not afraid of anything. I am only afraid of the global economy slowing," he said.
Even so, demand for AI chips has been robust and outpacing supply, he said. In March, TSMC announced an additional $100 billion investment in the US to boost American chipmaking.
Wei said TSMC expects the company's revenue to grow in the mid-20% range this year, with a "record profit" even amid the tariff uncertainty and a recent sharp rise in the Taiwan dollar, which would weigh on its gross margin.
The tech sector's demand for AI has been strong, as evidenced by Nvidia's first-quarter earnings report last week. The tech titan's revenue beat Wall Street's expectations even amid US export restrictions on China's chip sales.
Nvidia's share price is up 5.2% so far this year after surging nearly 25% over the last month alone.
However, TSMC's share prices have been weighed down by macroeconomic and tariff concerns. The Taiwan-listed stock is down about 8% this year. TSMC American Depositary Receipts are little changed this year.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
20 minutes ago
- Yahoo
Australian PM Floats Potential US Beef Import Deal for Trump
(Bloomberg) -- Australian Prime Minister Anthony Albanese has signaled scope for a potential deal on US beef imports to his nation as part of tariff negotiations with President Donald Trump. Next Stop: Rancho Cucamonga! ICE Moves to DNA-Test Families Targeted for Deportation with New Contract Where Public Transit Systems Are Bouncing Back Around the World US Housing Agency Vulnerable to Fraud After DOGE Cuts, Documents Warn The Global Struggle to Build Safer Cars Albanese reiterated Friday that Australia wouldn't 'change or compromise' its biosecurity laws as part of negotiations with the Trump administration to lift import duties on steel and aluminum, as well as a general 10% 'reciprocal' tariff. However, he added that a deal could be struck if Australia was able to maintain its rules to keep invasive pests and diseases out of the island nation. 'If things can be sorted out in a way that protects our biosecurity, of course, we don't just say no,' Albanese said in a radio interview with Australia Broadcasting Corp. The prime minister is expected to hold his first face-to-face meeting with Trump in coming weeks, potentially on the sidelines of a June 15-17 Group of Seven meeting that host nation Canada invited Albanese to attend. The two leaders have previously spoken on the phone multiple times, with Trump praising his 'very good relationship' with Albanese following the Australian PM's reelection on May 3. The lack of US beef exports to Australia has been a sticking point for the Trump administration. The president singled out Canberra for special mention in an April press conference, saying that while Australians were 'wonderful people and wonderful everything,' they were not buying enough American produce. Australia barred US beef imports in 2003 after an outbreak of mad cow disease in the nation, and only lifted some restrictions in 2019. However, Washington is demanding 'full market access for fresh US beef and beef products,' according to the US Trade Representative's 2025 Foreign Trade Barriers report released in March. The Australian government is also weighing a potential deal on critical minerals with the Trump administration as part of its tariff negotiations. Cavs Owner Dan Gilbert Wants to Donate His Billions—and Walk Again YouTube Is Swallowing TV Whole, and It's Coming for the Sitcom Millions of Americans Are Obsessed With This Japanese Barbecue Sauce Is Elon Musk's Political Capital Spent? Trump Considers Deporting Migrants to Rwanda After the UK Decides Not To ©2025 Bloomberg L.P. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
20 minutes ago
- Yahoo
Canadian National Railway Company (CNI) to Spend $80 Million in Atlantic Canada to Boost Capacity and Support Sustainable Growth
Canadian National Railway Company (NYSE:CNI) announced plans to invest around C$80 million in New Brunswick and Nova Scotia as part of its 2025 capital investment program. The funds will go toward track maintenance and key infrastructure upgrades to enhance rail operations in the region. This includes improvements to Canadian National Railway Company (NYSE:CNI)'s railyards and the CN Autoport facility in Eastern Passage, N.S., aiming to ensure the safe transport of goods and support long-term sustainable growth in Atlantic Canada. Tracy Robinson, President and Chief Executive Officer of CN, made the following statement: "We believe that investing in our network is about building for the future. Our continued infrastructure investment in New Brunswick and Nova Scotia will help strengthen the resiliency, and efficiency of our network across Atlantic Canada. Our focus remains on providing exceptional service to our customers and supply chain partners, supporting strong economic growth for North America and across the communities where we operate." Last year, Canadian National Railway Company (NYSE:CNI) invested about $84 million in the same provinces, mainly for infrastructure upkeep such as rail and tie replacements, grade crossing upgrades, and structural maintenance. Each year, the company helps drive the North American economy by safely moving over 300 million tons of natural resources, manufactured goods, and consumer products for its customers. While we acknowledge the potential of CNI as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock. READ NEXT: and Disclosure. None.
Yahoo
34 minutes ago
- Yahoo
Scott Jennings puts head in trash bin to show how Republicans feel about Trump-Musk feud
CNN's conservative commentator Scott Jennings humorously shoved his head in a trash bin on Thursday to demonstrate how he and others felt about President Donald Trump's new feud with Tesla CEO Elon Musk. Though Musk had been a staunch ally of Trump since the 2024 presidential election, the former Department of Government Efficiency (DOGE) chief broke ranks with the president over his One Big Beautiful Bill Act, which Musk described as a "disgusting abomination" on X Tuesday. This led to the two trading escalating barbs on social media, with Musk going so far as to claim Trump's name is in the Jeffrey Epstein file. National Debt Tracker: American Taxpayers (You) Are Now On The Hook For $36,214,501,400,213.64 As Of 6/5/25 Trump Supporters Defend 'Big, Beautiful Bill' Against Musk's Criticism, Shrug Off Debt Concerns Jennings tried to capture the sentiment felt by the Republican Party watching the feud while taking part in a panel on "The Lead with Jake Tapper." Read On The Fox News App "Let me just tell you what every Republican is doing," Jennings said before grabbing a nearby trash barrel and sticking his head in it. "Here's where we are today. Heads are in the garbage can right now. That's the state of everybody I know at the moment." In a more serious tone, he said, "Not gonna lie. It's an ugly day and, you know, you hate it when your friends are fighting. I continue to believe that their partnership last year saved America, and I also continue to believe their goals are not mutually exclusive." Jennings added that Republicans need to work together to accomplish both Trump's and Musk's goals and warned that Democrats are "laughing and advancing" while they are fighting. Click Here For More Coverage Of Media And Culture "Hopefully, cooler heads will soon prevail, and the president can get his agenda and Elon can convince the Republicans that the debt is a serious problem," Jennings said. Trump's "Big Beautiful Bill" is currently making its way through the Senate and would fund Trump's agenda, including strengthening border policies and ending taxes on overtime and article source: Scott Jennings puts head in trash bin to show how Republicans feel about Trump-Musk feud
