logo
TSMC Poised For Record Q2 Profit Amid Tariff, Currency Worries

TSMC Poised For Record Q2 Profit Amid Tariff, Currency Worries

BusinessToday17-07-2025
Taiwan Semiconductor Manufacturing Co (TSMC) is expected to post a record-breaking net profit of T$377.9 billion (US$12.86 billion) for the second quarter, a 52% jump year-on-year, driven by strong demand for advanced AI chips supplied to tech giants like Nvidia and Apple.
While Q2 revenue has already been flagged to rise 38.6%, concerns linger over potential US tariffs on Taiwanese semiconductors and the impact of a strengthening Taiwan dollar, which has appreciated 12% against the greenback this year. A 1% appreciation typically trims 0.4 percentage points off TSMC's gross margin.
The earnings will be announced at 0530 GMT, followed by a guidance call at 0600 GMT. TSMC shares are up 5% year-to-date, slowing from last year's 80% surge.
Reuters Related
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Oil steady amid economic concerns, US rate decision awaited
Oil steady amid economic concerns, US rate decision awaited

The Star

time8 minutes ago

  • The Star

Oil steady amid economic concerns, US rate decision awaited

SINGAPORE: Oil prices were steady on Tuesday amid uncertainty about the global economic outlook following the U.S.-EU trade deal, and as investors awaited the U.S. Federal Reserve's interest rate decision. Brent crude futures were up 1 cent at $70.05 a barrel at 0610 GMT, while U.S. West Texas Intermediate crude was at $66.69, down 2 cents. Both contracts settled more than 2% higher in the previous session, and Brent touched its highest level since July 18 on Monday. The trade agreement between the United States and the European Union, while imposing a 15% import tariff on most EU goods, sidestepped a full-blown trade war between the two major allies that would have rippled across nearly a third of global trade and dimmed the outlook for fuel demand. The agreement also calls for $750 billion of EU purchases of U.S. energy in the coming years, which analysts say the EU has virtually no chance of meeting, while European companies are to invest $600 billion in the U.S. over the course of President Donald Trump's second term. While the U.S.-EU trade deal finalisation came as a relief for global markets amid heightened uncertainty, the timeline and milestones targeted for the investments are unclear, said ANZ analysts in a note. "We think the 15% rate will pose headwinds to the Euro area's growth outlook but is unlikely to push the economy into recession." Meanwhile, top economic officials from the U.S. and China met in Stockholm on Monday for more than five hours of talks to resolve longstanding economic disputes at the centre of a trade war between the world's top two economies. The discussions are expected to resume on Tuesday. Oil market participants are also awaiting the U.S. Federal Open Market Committee meeting on July 29-30, where the Fed is widely expected to hold rates but could signal a dovish tilt amid signs of cooling inflation, said Priyanka Sachdeva, senior market analyst at brokerage Phillip Nova. "Momentum favors the upside in the near term, but the market is vulnerable to volatility triggered by central bank surprises or a breakdown in trade negotiations," said Sachdeva. "The likelihood of an economic slowdown and the Federal Reserve's potential rate cuts remain uncertain, limiting the upside in oil." Meanwhile, Trump set a new deadline on Monday of "10 or 12 days" for Russia to make progress toward ending the war in Ukraine or face sanctions. Trump has threatened sanctions on both Russia and buyers of its exports unless progress is made. - Reuters

Nomura first-quarter profit jumps 52pct
Nomura first-quarter profit jumps 52pct

New Straits Times

time8 minutes ago

  • New Straits Times

Nomura first-quarter profit jumps 52pct

TOKYO: Nomura Holdings reported on Tuesday a 52 per cent rise in first-quarter net profit. Japan's top investment bank and brokerage firm booked a profit of 104.6 billion yen (US$705.71 million) in the April-June period, compared to a profit of 68.9 billion yen in the same period a year prior. The results come on the back of Nomura's highest ever annual profit in the year to March 2025, advancing its leading position in the Japanese market as well as its multi-year effort to become a global financial player. Nomura's global markets division recorded seven per cent growth in revenue as volatility triggered by the proposed tariffs announced by US President Donald Trump in April boosted demand for macro and spread products. While global M&A dealmaking was held up by tariff-related uncertainty over the quarter, Nomura benefitted from major domestic deals, including the privatisations of listed subsidiaries by NTT and Toyota Motor. Nomura has expanded its wealth and asset management businesses as a means of generating stable income that is less subject to market volatility after years of choppy returns. It is now Japan's leading wealth management firm, capitalising on Japanese households' move from savings to investment, and the division made nearly 40 per cent of its pretax profits over the quarter.

New Vietnam Deal Minimal Impact On Yinson's Bottom Line
New Vietnam Deal Minimal Impact On Yinson's Bottom Line

BusinessToday

time12 minutes ago

  • BusinessToday

New Vietnam Deal Minimal Impact On Yinson's Bottom Line

CIMB Investment Bank Bhd (CIMB Securities) has reiterated a BUY call on Yinson Holdings Bhd with an unchanged target price of RM2.93, citing the group's latest contract win in Vietnam as a strategic boost to its long-term earnings visibility. The counter last traded at RM2.39. The house highlighted that Yinson, through a joint venture with PetroVietnam Technical Services Corporation (PTSC), secured a contract to provide, charter, operate and maintain a floating storage and offloading (FSO) vessel for the Block B Field offshore Vietnam. The deal, signed with Phu Quoc Petroleum Operating Company, carries a firm tenure of 14 years with an optional nine-year extension and is valued at approximately US$600 million over the full 23-year period. The Block B gas development project, which includes Blocks B&48/95 and 52/97, lies in shallow waters about 250km from Ca Mau Province and 400km from the O Mon Power Complex. CIMB Securities noted the project's location outside the disputed nine-dash line in the South China Sea reduces geopolitical risks, making it a secure investment. The development is expected to deliver over 5 billion cubic metres of gas annually to customers in southwest Vietnam, addressing the country's growing energy needs while contributing economic value to stakeholders. The new FSO, a double-hull vessel with storage capacity of about 350,000 barrels, will be built at shipyard facilities in Nantong, China, with first oil targeted for 3Q27. Incorporating dual-fuel technology for improved fuel efficiency and reduced emissions, the unit aligns with Yinson's sustainability goals. CIMB Securities said this marks Yinson's second FSO award in less than a year and its fourth collaboration with PTSC, reinforcing its standing as a leading independent offshore asset operator in the region. While the estimated capex for the project is about US$225 million, Yinson's 49% effective stake and an expected EBITDA margin of 85% could generate an internal rate of return of 9.3%, according to CIMB estimates. However, the house added that the contract's overall impact on Yinson's bottom line and SOP valuation will be minimal, with profit contribution projected between RM6 million and RM22 million over the contract term. CIMB Securities remains optimistic on Yinson's long-term prospects, supported by its sizeable US$19.6 billion order book, which includes potential extensions stretching to 2048. The research house also expects strong earnings growth in FY26 and FY27, driven by full-year contributions from three new floating production storage and offloading (FPSO) units — Maria Quiteria, Atlanta and Agogo. Related

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store