
TSMC Poised For Record Q2 Profit Amid Tariff, Currency Worries
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.
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The Star
7 hours ago
- The Star
US drops sanctions on Myanmar junta allies after Trump praise
A trishaw driver rides as his passenger uses an umbrella to cover themselves from the rain in Yangon on July 21, 2025. -- Photo by Sai Aung MAIN / AFP YANGON (AFP): The United States has lifted sanctions on several allies of Myanmar's ruling general and their military-linked firms, a US Treasury notice shows, after the junta chief sent a glowing letter of praise to President Donald Trump. Junta chief Min Aung Hlaing seized power in a 2021 coup, deposing the civilian government and sparking a civil war that has killed thousands, leaving 3.5 million displaced and half the nation in poverty. Two weeks ago, the top general sent a letter to Trump, responding to his threat of tariffs by lauding his presidency with praise, including for shutting down US-funded media outlets covering the conflict. A US Treasury notice on Thursday said sanctions were dropped against KT Services and Logistics, the Myanmar Chemical and Machinery Company, and Suntac Technologies -- as well as their managers. In a statement, a US Treasury Department spokesperson denied there was an "ulterior motive" in the move, although the notice did not provide a reason for the removals. "Anyone suggesting these sanctions were lifted for an ulterior motive is uninformed and peddling a conspiracy theory driven by hatred for President Trump," said the spokesperson, on condition of anonymity. They added that individuals were "regularly added and removed" from the sanctions list "in the ordinary course of business." KT Services and Logistics and its CEO Jonathan Myo Kyaw Thaung were described as junta "cronies" when they were sanctioned in 2022 for leasing Yangon's port from a military firm for $3 million a year. The Myanmar Chemical and Machinery Company and its owner, Aung Hlaing Oo, and Suntac Technologies owner Sit Taing Aung were sanctioned later that year for producing arms, including tanks and mortars. A third Myanmar national, Tin Latt Min -- who the US previously described as owning "various companies that are closely related to the regime" -- was also removed from the sanctions list. Trump sent a letter to junta chief Min Aung Hlaing earlier this month, one among a raft of missives despatched to foreign leaders during his global tariff blitz. The letter -- believed to be Washington's first public recognition of the junta's rule since the coup -- threatened Myanmar with a 40 percent levy unless a trade deal was struck. Min Aung Hlaing responded with a multi-page letter expressing his "sincere appreciation" for Trump's message and praising his "strong leadership". - AFP


The Star
10 hours ago
- The Star
Trump administration issues plan to limit AI exports to China
The White House on Wednesday released proposals to restrict exports of American AI equipment and limit the spread of Chinese AI models as part of a sweeping plan to shape the rules governing the fast-moving technology. The 28-page AI Action Plan marks US President Donald Trump's administration's first comprehensive strategy on the topic and comes as national security hawks have raised concerns that superior American chips may reach China – including through third countries – and advance its AI and military development. Under the plan, the US Commerce Department will lead an effort to develop new export controls on chipmaking components to close 'loopholes' in current restrictions that now focus on major systems. The department will also lead efforts to increase the monitoring of exported US chip end users and to explore using new chip location verification features to keep them out of 'countries of concern' – a term often used to refer to China, Iran, North Korea and Russia, among others. The plan also directs the Defence and Commerce departments to coordinate with allies on adopting US export controls and to prohibit American adversaries from being involved in their defence supply chains. 'Artificial intelligence is a revolutionary technology with the potential to transform the global economy and alter the balance of power in the world,' White House AI tsar David Sacks said in a written statement. 'To win the AI race, the US must lead in innovation, infrastructure, and global partnerships ... This Action Plan provides a road map for doing that,' he added. The Trump administration decision last week to allow American chipmaker Nvidia to sell its H20 chips to China reinvigorated furious debate about how to extend the US technological lead without compromising national security. That came months after the administration revoked a rule put in place under former President Joe Biden that limited how much US AI computing capability certain countries could access through imported US chips. American AI companies face increased competition from such Chinese rivals as Hangzhou-based DeepSeek, which sent global shock waves earlier this year when it released powerful AI models built far more cheaply than many had thought possible. Trump has previously warned of China's potential to surpass the US in the race for AI dominance. Speaking about the White House plan at an AI summit on Wednesday, Trump said he wants to make the US an 'AI export powerhouse' while maintaining 'necessary protections for our national security'. Commerce Secretary Howard Lutnick and Secretary of State Marco Rubio 'will work to rapidly expand American AI exports of all kinds, from chips to software to data storage', he said, before signing executive orders to fast-track AI development and promote exports. Ryan Fedasiuk, a former technology policy advisor in the State Department's Office of China Coordination, said that taken together, the export control proposals 'thread a difficult needle' in the lead-up to US-China trade talks in Stockholm next week. 'They tighten technology controls without risking an existential blow to the provisional trade deal struck in London, and they focus on enforcement gaps rather than adding sweeping new restrictions,' he said. The real impact of the plan will depend 'entirely' on its execution, Fedasiuk added. 'Allied coordination is where the rubber meets the road. Export controls only work if they're multilateral, and we've seen too many cases where US restrictions just pushed business to Dutch or Japanese competitors.' The new administration blueprint also makes several recommendations focused on countering the spread of Chinese models. To ensure 'that free speech flourishes in the era of AI', the Commerce Department is to evaluate advanced Chinese AI models for alignment with Communist Party talking points and censorship practices. Along with the US State Department, Commerce will lead a campaign to 'vigorously advocate' for international AI governance approaches that 'counter Chinese influence' at diplomatic and standard-setting bodies. Too many existing efforts 'have advocated for burdensome regulations, vague 'codes of conduct' that promote cultural agendas that do not align with American values, or have been influenced by Chinese companies attempting to shape standards for facial recognition and surveillance', the plan said. The two departments will also lead a new initiative to share technology protection measures, including measures in basic research and higher education, with allies and partners. To promote the use of American AI technology rather than that of adversaries, the Commerce Department will gather industry proposals for 'full-stack AI export packages' – bundled systems that include AI hardware, software, and related services intended for export. In recent years, the US has pushed its European and Asian allies to stop exports of advanced chipmaking equipment to China. Wednesday's document carries a thinly veiled threat to allies, warning that failure to align with US export controls could trigger punitive trade measures through secondary tariffs. - SOUTH CHINA MORNING POST


The Star
10 hours ago
- The Star
Oil prices ease to three-week low at weekend as negative economic news offsets trade optimism
JAKARTA/SINGAPORE (Reuters): Oil prices eased to a three-week low on Friday night on negative economic news from the United States and China and signs of growing supply despite optimism U.S. trade deals could boost global economic growth and oil demand in the future. Brent crude futures fell 76 cents, or 1.1%, to US$68.42 a barrel by 1:44 p.m. EDT (1744 GMT), while US West Texas Intermediate (WTI) crude fell 91 cents, or 1.4%, to US$65.12. That put Brent on track for its lowest close since July 4 and WTI on track for its lowest close since June 30. For the week, Brent was down about 1% and WTI down about 3%. European Commission President Ursula von der Leyen will meet U.S. President Donald Trump on Sunday in Scotland after European Union officials and diplomats said they expected to reach a framework trade deal this weekend. The euro zone economy has remained resilient to the pervasive uncertainty caused by a global trade war, a slew of data showed on Friday, even as European Central Bank policymakers appeared to temper market bets on no more rate cuts. In the U.S., meanwhile, new orders for U.S.-manufactured capital goods unexpectedly fell in June while shipments of those products increased moderately, suggesting that business spending on equipment slowed considerably in the second quarter. Trump said on Friday that he had a good meeting with Federal Reserve Chair Jerome Powell and got the impression that the head of the U.S. central bank might be ready to lower interest rates. Central banks, like the Fed or ECB, use interest rates to keep inflation in check. Lower interest rates reduce consumer borrowing costs and can boost economic growth and demand for oil. In China, the world's second biggest economy, fiscal revenue dipped 0.3% in the first six months from a year earlier, the finance ministry said on Friday, maintaining the rate of decline seen between January and May. GROWING SUPPLIES? The US is preparing to allow partners of Venezuela's state-run PDVSA, starting with U.S. oil major Chevron, to operate with limitations in the sanctioned nation, sources said on Thursday. That could boost Venezuelan oil exports by a little more than 200,000 barrels per day (bpd), which would be welcome news for U.S. refiners, as it would ease tightness in the heavier crude market, ING analysts wrote. In the Middle East, Iran said it would continue nuclear talks with European powers after "serious, frank, and detailed" conversations on Friday, the first such face-to-face meeting since Israel and the U.S. bombed Iran last month. Venezuela and Iran are members of the Organization of the Petroleum Exporting Countries (OPEC). Any deal that could increase the amount of oil either sanctioned country could export would boost the amount of crude available to global markets. A meeting of the Joint Ministerial Monitoring Committee, which includes top ministers from OPEC and allies like Russia, a group known as OPEC+, is scheduled for 1200 GMT on Monday. Four OPEC+ sources told Reuters the meeting was unlikely to alter the group's existing policy, which calls for eight members to raise output by 548,000 bpd in August. In Russia, the world's second biggest crude oil producer behind the U.S., daily oil exports from its western ports are set to be around 1.77 million bpd in August, down from 1.93 million bpd in July's plan, amid the expected rise in refinery runs, Reuters calculations based on data from two sources show. In the U.S., energy firms this week cut the number of oil and natural gas rigs operating for the 12th time in 13 weeks, energy services firm Baker Hughes said in its closely followed report on Friday. (Reporting by Scott DiSavino in New York, Robert Harvey in London, and Sudarshan Varadhan and Siyi Liu in Singapore. Editing by Kirsten Donovan and Emelia Sithole-Matarise) - Reuters