Latest news with #CCWei
Yahoo
2 hours ago
- Business
- Yahoo
TSMC CEO Tells Trump $100 Billion US Chip Expansion Will 'Take Time' Amid Tariff Pressures, Surging AI Demand
Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) CEO C.C. Wei revealed during Tuesday's shareholder meeting that he informed President Donald Trump that establishing a proposed $100 billion U.S. manufacturing venture will 'take time,' beyond the anticipated timeline. What Happened: Wei disclosed that TSMC has maintained ongoing dialogue with the U.S. Commerce Department regarding Trump's semiconductor tariffs since their implementation, reported Baha Breaking News. Don't Miss: Start investing with eToro's CopyTrader — mirror top-performing traders with no management fees, and receive a $10 bonus when you deposit $100 today. Maker of the $60,000 foldable home has 3 factory buildings, 600+ houses built, and big plans to solve housing — you can become an investor for $0.80 per share today. The CEO expressed concerns that higher duties would elevate TSMC's U.S. production costs, though he emphasized that tariff policies remain 'ultimately a matter between governments, not between a government and a company.' Despite tariff headwinds, Wei assured investors that artificial intelligence chip demand continues to substantially outpace supply capabilities. Why It Matters: The CEO explained that while tariffs don't directly impact TSMC as an exporter, they create indirect pressure through higher import costs for customers. 'Tariffs can lead to slightly higher prices and when prices go up, demand may go down,' Wei noted. TSMC's cautious stance on U.S. expansion comes as the chipmaker weighs the massive $100 billion investment over four years to build advanced manufacturing facilities stateside. The company has already committed over $65 billion to Arizona fabrication plants for advanced chip production. Read Next: Nancy Pelosi Invested $5 Million In An AI Company Last Year — Here's How You Can Invest In Multiple Pre-IPO AI Startups With Just $1,000. Invest Where It Hurts — And Help Millions Heal: Invest in Cytonics and help disrupt a $390B Big Pharma stronghold. Photo courtesy: Jack Hong / This article TSMC CEO Tells Trump $100 Billion US Chip Expansion Will 'Take Time' Amid Tariff Pressures, Surging AI Demand originally appeared on 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
Globe and Mail
2 days ago
- Business
- Globe and Mail
TSMC Stock Outlook Strong as AI Chip Demand Soars Despite Tariff and Taiwan Risks
At TSMC's (TSM) annual shareholder meeting in Hsinchu, Taiwan, Chief Executive C.C. Wei stood at the crossroads of tech ambition and global uncertainty. With towering new fabs rising in Arizona, AI chip orders outpacing the speed of production, and tariff clouds brewing over trade routes, TSMC finds itself both in the driver's seat of chip creation and on the path of potential geopolitical storms. Yet despite the noise, Wei's message was clear: AI is the wind in TSMC's sails, and it's blowing hard. Confident Investing Starts Here: Tariffs Are a Pain, but AI Demands Remain Robust Wei acknowledged that U.S. tariffs, part of President Trump's broader trade policy, have created some turbulence. Although TSMC, as an exporter, isn't directly taxed, higher import costs for U.S. buyers could cool demand. Still, he said the company hasn't seen customers backing off due to tariff fears. In fact, AI-related orders remain so strong that supply can't keep up. 'Tariffs do have some impact,' Wei said, 'but I can assure you that AI demand has always been very strong and it's consistently outpacing supply.' That insatiable demand is helping TSMC power through other headwinds, too. The world's top chipmaker is in the middle of a massive $165 billion investment to build cutting-edge fabs in the U.S., with government subsidies helping soften the cost gap between American and Taiwanese production. While chips made in Arizona may still end up priced higher, automation is keeping labor costs low, and Washington is listening—TSMC is in active talks with the U.S. Commerce Department to resolve concerns over tariffs on equipment. Geopolitical Tension Is out of TSM's Hands Wei also addressed the rising political tension in the Taiwan Strait, calling it a matter for governments to handle. 'If something happens that we don't want to happen,' he said carefully, 'it's not for TSMC alone to deal with.' One notable drag on earnings: a strengthening Taiwan dollar, which has cut into gross margins by more than 3 percentage points. Still, the company projects a record year in 2025, driven by booming demand for AI infrastructure from top clients such as Apple (AAPL) and Nvidia (NVDA). While tariff and geopolitical risks are worth watching, TSMC's position at the heart of the AI chip supply chain may offer strong support for long-term growth, even in uncertain times. Is TSM Stock a Buy, Sell, or Hold? Due to TSMC's importance to the semiconductor industry, as always, TSMC sports a rating of a Strong Buy, based on eight recent analysts' ratings. The average TSM stock price target is $219.43, implying a 12.62% upside. See more TSM analyst ratings Disclaimer & Disclosure Report an Issue
Yahoo
2 days ago
- Business
- Yahoo
Why the world's largest contract chipmaker isn't concerned about AI chip competition
TSMC, the world's largest contract chipmaker, says it's benefiting from strong AI demand. While Nvidia dominates the AI space with its GPUs, there are competitors, including ASICs. TSMC's CEO, CC Wei, said the company makes both GPUs and ASICs. 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. Read the original article on Business Insider 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
Business Insider
2 days ago
- Business
- Business Insider
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.
Time of India
3 days ago
- Business
- Time of India
TSMC suspends new factory in Japan due to traffic jams; tells government, 'we'll delay the construction until ...'
Taiwan Semiconductor Manufacturing Co. (TSMC) CEO CC Wei attributed delays in expanding its operations in southwestern Japan to worsening traffic congestion. According to a report in Bloomberg, Wei confirmed that the construction of a second plant in Japan is facing minor delays. While TSMC has primarily operated from Taiwan, it established its first Japanese factory after receiving significant incentives from Tokyo. The first TSMC plant in Japan, operational since last year, has boosted the local economy but strained the rural infrastructure, leading to housing and service shortages and extended commute times. 'We have created too big an impact on the local traffic. I have experienced that in person. For what used to take a 10-15 min drive, it now takes almost an hour,' Wei told reporters after a shareholders' meeting in Hsinchu, Taiwan, on Tuesday, as quoted by Bloomberg. He added, 'We told the Japanese government we'll delay the construction until the traffic improves. They said they'll make improvements as soon as possible.' Wei did not specify the duration of the delay. As the world's leading contract chipmaker, TSMC is central to the global tech supply chain, producing advanced chips for Apple's iPhones and Nvidia's AI servers. Governments worldwide, from the U.S. to Europe, have sought TSMC's investment, especially after pandemic-era chip shortages disrupted production across industries like automotive and consumer electronics. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Dermatologista recomenda: simples truque elimina o fungo facilmente Acabe com o Fungo Undo TSMC says worried about local residents The planned second factory in Kumamoto Prefecture, initially expected to begin construction in early 2025, is critical to Japan's goal of revitalizing its semiconductor industry and attracting talent to an aging nation. However, the local infrastructure has struggled to accommodate the influx of workers from TSMC's first plant, even as the company's U.S. expansion reduces pressure on Japanese production. 'This will become negative for the area, for the local government, but I am most worried it will become negative for local residents,' Wei reportedly said. 'So we told the Japanese government to improve the traffic first.' Japan's chief government spokesman, Yoshimasa Hayashi, responded, stating, 'Heightened uncertainty in the global economy, along with challenges including the lack of domestic infrastructure and labor can lead to hesitation among private companies thinking of investing,' according to Bloomberg. He emphasized Tokyo's commitment to improving conditions to attract foreign investment and talent. The delay in Japan echoes earlier challenges TSMC faced in launching its U.S. facilities in Arizona, though progress has since been made. On Tuesday, TSMC executives noted that demand for AI chips continues to outpace supply. Wei reiterated the company's April forecast of mid-20% revenue growth for 2025, despite margin pressures from a strengthening Taiwanese dollar. TSMC expects record profits this year. AI Masterclass for Students. Upskill Young Ones Today!– Join Now
