Taiwan Dollar Strength Tests TSMC Amid AI Chip Boom
After a blockbuster second quarter with profit up sixty percent, they still worry that a 1% rise in the local currency cuts reported NT dollar revenue by the same amount. That led to a ten billion dollar investment in an overseas hedging unit.
The capital spending plan of $38 to $42 billion dollars remains intact, even as TSMC presses ahead with its Arizona fabs. The second plant could start making chips as soon as twenty twenty?seven, helping to balance out any forex tremors.
Investors will be watching the next earnings report for proof that these hedges and overseas expansions can really keep margins on track.
This article first appeared on GuruFocus.
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