Latest news with #HPC
Yahoo
11 hours ago
- Business
- Yahoo
TSMC vs ASML: Which Semiconductor Giant Is the Better Buy?
The semiconductor industry has become a hot topic for investors as chip demand continues to grow. The two semiconductor titans, Taiwan Semiconductor Manufacturing Company or TSMC (NYSE: TSM) and ASML Holdings NV (NASDAQ: ASML), have just released their latest earnings. TSMC is the largest global semiconductor manufacturer for a multitude of applications such as high-performance computing (HPC). ASML, on the other hand, plays a vital role in manufacturing lithography machines which craft the foundation of microchips. With both giants playing crucial roles in the semiconductor industry, we size up these two behemoths to decide which presents a better buying opportunity. Earnings recap For the second quarter of 2025 (2Q 2025) ending 30 June 2025, TSMC saw a surge of 38.6% year-on-year (YoY) in net revenue to NT$933.8 billion. The firm also reported an increase in net profit of 60.7% YoY to NT$398.27 improved financial numbers can be attributed to an increase in demand for artificial intelligence (AI) and HPC. Consequently, there was a ramp up in the revenue growth of 5 nanometre (nm) and 3 nm chips, which made up 36% and 24% of total wafer revenue. In the same period, ASML reported an increase of 23.2% YoY to €7.7 billion for 2Q 2025. Additionally, ASML's net profit grew by 45.1% YoY to €2.3 billion. This growth was contributed by an increase in demand for dynamic random-access memory chips and adoption of extreme ultraviolet (EUV) lithography machines. The increase was also due to higher upgrade business which can be seen in the strong performance in installed base management sales of €2.1 billion. Moreover, there were one-off cost-saving events for ASML in 2Q 2025 which drove their gross margins higher by 2.2 percentage points to 53.7% compared to the previous year. Strategic developments On 17 July 2025, TSMC was reported to be planning a global and local fab Taiwan, this expansion includes 11 wafer manufacturing fabs and four advanced packaging facilities over the next few years. Internationally, the company plans to develop a GIGAFAB in Arizona and more specialty fabs in Japan. These plans will enable TSMC to increase the stickiness of its global clients who operate in diverse global expansion also reduces the risk of supply chain bottlenecks from geopolitical conflicts such as the US-China trade 2Q 2025, ASML shipped its first EXE:5200B system. This system, which has better overlay performance, increases productivity through higher resolution and throughput. The launch of this product strengthens ASML's technological innovation moat in the semiconductor industry. ASML is then able to tap into the higher demand for EUV systems by providing a more sophisticated next-generation EUV product. Optimistic guidance TSMC's management expects a revenue growth of 30% in 2025 compared to the previous year which is fuelled by the rising demand in AI. However, management does highlight that tariff policies may be a concern for their customer-related and price-sensitive market segments. Meanwhile, ASML expects a total net sales growth of 15% along with a 52% gross margin for fiscal management credits this confidence to the growth of the AI industry. Management also highlights the risks from geopolitical tensions moving into 2026. Get Smart: Weighing growth and risks These two companies have their names etched into the chipmaking ecosystem. As Smart Investors, it is important to evaluate the gains together with the risks of the opportunities presented. At the end of the day, the decision lies in your investment objectives and risk appetite. Many investors think DeepSeek lowering AI costs means less revenue for tech companies. But that's not the full story, and believing it could cost you. In our latest free report, we unpack a surprising insight from a top tech CEO who explains why lower AI costs may actually drive more tech spending, not less — and he's got the numbers to prove it. If you've misunderstood this trend, you could miss out on some of the biggest investment opportunities. Click here now to access 'How GenAI is Reshaping the Stock Market' today to get the full breakdown. Follow us on Facebook, Instagram and Telegram for the latest investing news and analyses! Disclosure: Gabriel Lim does not own shares in any of the companies mentioned. The post TSMC vs ASML: Which Semiconductor Giant Is the Better Buy? appeared first on The Smart Investor.
Time of India
3 days ago
- General
- Time of India
Board plans ‘holistic' progress cards for students
Cuttack: Board of Secondary Education (BSE), Odisha, on Friday announced the introduction of holistic progress cards (HPC) for students, starting this academic year. This initiative aims to provide a comprehensive assessment of students beyond traditional scores. Tired of too many ads? go ad free now BSE president Subrat Tarai said the new evaluation model will be implemented across all 9,933 schools affiliated to the board. The HPC will assess students on 41 parameters, including cognitive abilities, physical fitness, creativity, life skills, emotional development and social behaviour. Tarai emphasised the importance of evaluating students on various fronts, such as teamwork and critical thinking, to reflect their true potential. He said the holistic assessment aligns with the National Education Policy (NEP) and offers a broader picture of a student's development. Schools will be equipped with the necessary services to implement the system, and scores will be finalised under BSE supervision. Workshops will be conducted to train teachers and educational experts on the HPC format and its application. A special HPC marksheet format will also be provided to all schools. Additionally, the board plans to integrate the matriculation certificate verification process with the HPC system to enhance transparency and student tracking. Officials said the initiative will improve student learning outcomes and reduce exam-centric stress, promoting a more inclusive and balanced education model.
Globe and Mail
3 days ago
- Business
- Globe and Mail
ETFs to Capitalize on TSM's Impressive Q2 Earnings
Taiwan Semiconductor Manufacturing TSM reported robust second-quarter 2025 results, reflecting strength in AI and HPC-related demand, continued advanced node leadership and solid execution on global expansion. The company beat estimates for both the top and the bottom lines on surging demand for advanced chips used in AI applications. Investors seeking to tap TSM's growth could consider ETFs having the largest allocation to the world's largest contract semiconductor manufacturer. These include SP Funds S&P World ex-US ETF SPWO, SP Funds S&P Global Technology ETF SPTE, VanEck Vectors Semiconductor ETF SMH, Matthews Emerging Markets ex China Active ETF MEMX and Global X Emerging Markets ex-China ETF EMM. Earnings in Focus Taiwan Semiconductor reported earnings per ADR of $2.47, which outpaced the Zacks Consensus Estimate of $2.37 and improved 60.7% from the year-ago earnings. Revenues rose 38.6% year over year to $30.07 billion and were above the consensus estimate of $30.04 billion. TSMC's high-performance computing division, which encompasses artificial intelligence and 5G applications, drove sales in the second quarter, contributing 60% of revenues. The world's largest contract chip manufacturer has been benefiting from the megatrend toward AI as it gains from producing advanced processors (3-nanometer and 5-nanometer technologies) for clients, including NVIDIA (NVDA) and Apple AAPL. The 5-nanometer wafer accounted for 36% of total revenues in the second quarter, followed by the 3-nanometer wafer at 24% and the 7-nanometer wafer at 14% (read: Tech ETFs Hit New Highs as NVIDIA Powers Market Rally). For the third quarter of 2025, the company expects revenues of $31.8-$33 billion. The Zacks Consensus Estimate is pegged at $30.69 billion. TSM also expects its full-year 2025 revenues to rise by around 30% in U.S. dollar terms, supported by growth in AI and demand for its most advanced technologies. ETFs to Tap Let's delve into each ETF below: SP Funds S&P World ex-US ETF (SPWO) SP Funds S&P World ex-US ETF tracks the S&P DM Ex-U.S. & EM 50/50 Shariah Index, which is designed to measure the performance of sharia-compliant components of emerging market and developed market stocks, excluding U.S. stocks. It holds a basket of 375 stocks, with Taiwan Semiconductor taking the top spot at 16.8%. SP Funds S&P World ex-US ETF has accumulated $61.6 million in its asset base. It charges 55 bps in annual fees and trades in a lower average trading volume of 11,000 shares. SPWO has a Zacks ETF Rank #4 (Sell). SP Funds S&P Global Technology ETF (SPTE) SP Funds S&P Global Technology ETF focuses on large and mid-cap technology stocks from around the world, with a specific emphasis on companies pioneering in areas like e-commerce, cloud computing and healthcare technology. It follows the S&P Global 1200 Shariah Information Technology index and holds 94 stocks in its basket. Taiwan Semiconductor occupies the second position with an 11.1% share. SP Funds S&P Global Technology ETF has accumulated $61.6 million in its asset base and charges 55 bps in fees per year. It trades in a volume of 11,000 shares a day on average. VanEck Vectors Semiconductor ETF (SMH) VanEck Vectors Semiconductor ETF offers exposure to companies involved in semiconductor production and equipment. It follows the MVIS US Listed Semiconductor 25 Index, which tracks the most liquid companies in the industry based on market capitalization and trading volume. VanEck Vectors Semiconductor ETF holds 26 stocks in its basket, with Taiwan Semiconductor occupying the second position at 11.3%. VanEck Vectors Semiconductor ETF has managed assets worth $27.3 billion and charges 35 bps in annual fees and expenses. SMH trades in an average daily volume of 8 million shares and has a Zacks ETF Rank #1 (Strong Buy) with a High risk outlook (read: Tariff-Led Volatility Ahead for Big Tech? ETFs in Focus). Matthews Emerging Markets ex China Active ETF (MEMX) Matthews Emerging Markets ex China Active ETF seeks alpha in Global Emerging Markets ex China and capitalizes on consumption and innovation trends. It holds 76 stocks, with TSM being the top firm with 11.6% share. Matthews Emerging Markets ex China Active ETF has AUM of $35.5 million and charges 79 bps in annual fees. It trades in a volume of 1,000 shares a day on average. Global X Emerging Markets ex-China ETF (EMM) Global X Emerging Markets ex-China ETF is an actively managed fund seeking to invest in emerging market companies, excluding China, which are believed to achieve or maintain a dominant position within their respective market. As part of its investment strategy, EMM aims to identify early winners in growing industries where entrepreneurship can produce long-term global competitiveness. Global X Emerging Markets ex-China ETF holds 49 stocks in its basket, with Taiwan Semiconductor taking the second position at 15.2% share. Global X Emerging Markets ex-China ETF has AUM of $27.3 million and charges 76 bps in annual fees. It trades in a volume of 26,000 shares a day on average. Want key ETF info delivered straight to your inbox? Zacks' free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. Get it free >> Apple Inc. (AAPL): Free Stock Analysis Report Taiwan Semiconductor Manufacturing Company Ltd. (TSM): Free Stock Analysis Report VanEck Semiconductor ETF (SMH): ETF Research Reports SP Funds S&P World (ex-US) ETF (SPWO): ETF Research Reports
Time of India
3 days ago
- Business
- Time of India
TSMC's global expansion: Eyes Arizona as global semiconductor hub; planning to establish a global gigafab cluster
Taiwanese semiconductor giant TSMC is accelerating its US expansion, stepping up the construction of its second and third chip fabrication plants in Arizona as part of plans to build a massive 'gigafab' cluster in the state, as per a report by Focus Taiwan. Taiwan Semiconductor Manufacturing Co. (TSMC) is advancing its strategy to meet increasing global demand for advanced semiconductors used in smartphones, artificial intelligence (AI), and high-performance computing (HPC). At an investor conference on Thursday, TSMC chairman CC Wei highlighted Arizona's growing strategic importance within the company's global operations. He said the state is set to become a critical hub for TSMC's most advanced manufacturing technologies. The company's first Arizona fab began mass production in the fourth quarter of 2024, using 4-nanometre process technology. Wei further stated that the facility's yield rate is already on par with TSMC's similar fabs in Taiwan. Construction of the second Arizona fab, which will produce 3nm chips, the most advanced node currently deployed in Taiwan, has been completed. Due to strong customer demand, production is now scheduled to commence several quarters ahead of the original timeline. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Turn Nervous Into Natural – Book a Free Demo Today Planet Spark Book Now Undo Meanwhile, groundwork has begun for a third fab in the state, which will use 2nm and A16 process technologies. Wei confirmed that demand for AI-related chips remains particularly robust. TSMC's total investment across the three Arizona fabs stands at $65 billion. The company has also pledged an additional $100 billion over the next few years to deepen its US presence. This includes plans for three more fabs, two integrated circuit (IC) assembly plants, and a dedicated research and development centre. These projects are expected to transform Arizona into a self-sustaining semiconductor manufacturing hub, with the state's facilities eventually accounting for roughly 30% of TSMC's most advanced chip production, those using 2nm and newer technologies. TSMC's global expansion plans extend beyond the US. In Japan, its first fab in Kumamoto began mass production in late 2024, producing chips using 12nm, 16nm, and 28nm processes. A second fab, originally scheduled to break ground in early 2025 and begin operations in late 2027, will manufacture 6nm, 7nm, and 40nm chips. However, Wei noted a slight delay in the project due to traffic infrastructure issues. Construction is now expected to start later this year, depending on local progress. In Germany, TSMC is also progressing smoothly with the construction of a fabrication facility in Dresden, which will focus on specialty semiconductor technologies. Back in Taiwan, the company continues its major domestic expansion. It plans to build 11 new wafer fabs and four advanced IC assembly facilities over the coming years. Current projects in Hsinchu and Kaohsiung are scheduled to begin mass production using 2nm process technology later this year. Despite the ambitious overseas expansion, TSMC's chief financial officer Wendell Huang cautioned that the company will face short-term financial pressures. He projected a 2–3 percentage point dip in gross margins initially, with a broader 3–4 percentage point decline expected over the next five years due to the higher operating costs associated with international sites. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Yahoo
3 days ago
- Business
- Yahoo
Taiwan Semiconductor Manufacturing Co Ltd (TSM) (Q2 2025) Earnings Call Highlights: Robust ...
Revenue: Increased 17.8% sequentially to $30.1 billion in USD terms. Gross Margin: Decreased 0.2 percentage points sequentially to 58.6%. Operating Margin: Increased 1.1 percentage points sequentially to 49.6%. Earnings Per Share (EPS): TWD15.36, up 60.7% year over year. Return on Equity (ROE): 34.8%. 3-nanometer Technology Revenue: Contributed 24% of wafer revenue. 5-nanometer Technology Revenue: Accounted for 36% of wafer revenue. 7-nanometer Technology Revenue: Accounted for 14% of wafer revenue. Advanced Technologies Revenue: Accounted for 74% of wafer revenue. HPC Revenue: Increased 14% quarter over quarter, accounting for 60% of total revenue. Smartphone Revenue: Increased 7%, accounting for 27% of total revenue. IoT Revenue: Increased 14%, accounting for 5% of total revenue. Automotive Revenue: Remained flat, accounting for 5% of total revenue. DCE Revenue: Increased 30%, accounting for 1% of total revenue. Cash and Marketable Securities: TWD2.6 trillion or USD90 billion. Accounts Receivable Turnover Days: Decreased by 5 days to 23 days. Days of Inventory: Decreased by 7 days to 76 days. Cash from Operations: TWD497 billion. Capital Expenditures (CapEx): TWD297 billion or USD9.6 billion. Cash Dividend: TWD117 billion for third quarter '24. Third Quarter Revenue Guidance: Expected between USD31.8 billion and USD33 billion. Third Quarter Gross Margin Guidance: Expected between 55.5% and 57.5%. Third Quarter Operating Margin Guidance: Expected between 45.5% and 47.5%. 2025 Capital Budget: Between USD38 billion and USD42 billion. Warning! GuruFocus has detected 9 Warning Signs with BOM:534600. Release Date: July 17, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points Second-quarter revenue increased by 17.8% sequentially in US dollar terms, reaching $30.1 billion, exceeding guidance. Advanced technologies (7-nanometer and below) accounted for 74% of wafer revenue, showcasing strong demand for cutting-edge processes. TSMC's AI and HPC-related demand remains robust, contributing significantly to revenue growth. The company plans to invest $165 billion in advanced semiconductor manufacturing in the US, indicating strong future growth potential. TSMC's N2 and A16 technologies are on track, with N2 expected to enter volume production in the second half of 2025, promising future revenue streams. Negative Points Gross margin decreased by 0.2 percentage points sequentially to 58.6%, impacted by unfavorable foreign exchange rates and overseas fab costs. The company anticipates continued gross margin dilution from overseas fabs, with a forecasted impact of 2% to 4% annually over the next five years. Foreign exchange rate fluctuations pose a significant risk, with a 1% appreciation of the NT dollar against the US dollar reducing gross margin by about 40 basis points. TSMC's fourth-quarter revenue is expected to decline, reflecting a cautious outlook due to potential tariff impacts and macroeconomic uncertainties. The company faces challenges in narrowing the supply-demand gap for advanced nodes like N3 and N5, indicating potential capacity constraints. Q & A Highlights Q: How is TSMC addressing the increasing demand for AI and data center applications, particularly regarding CoWoS capacity? A: C.C. Wei, Chairman and CEO, stated that AI demand is growing stronger, and TSMC is working to narrow the supply-demand gap for CoWoS. The company is focused on increasing capacity to meet this robust demand. Q: What is TSMC's outlook on the impact of foreign exchange rates on profitability, and how does it plan to manage these effects? A: Wendell Huang, CFO, explained that foreign exchange rates significantly impact profitability. TSMC plans to manage these effects by leveraging other factors such as pricing and operational efficiencies to maintain a gross margin of 53% or higher. Q: Can you provide insights into the N2 ramp and its expected revenue contribution? A: C.C. Wei mentioned that the N2 ramp profile is similar to N3, but revenue contribution will be higher due to increased demand from both smartphone and HPC customers. The ramp is constrained by capacity, but the pricing for N2 will reflect its value. Q: How does TSMC plan to address the tight supply for N3 and N5 nodes, and what is the strategy for mature nodes? A: C.C. Wei noted that both N3 and N5 nodes are experiencing high demand and tight supply. TSMC is using its GigaFab cluster to adjust capacity between nodes. For mature nodes, TSMC focuses on specialty technologies like RF and CMOS image sensors to meet customer demand. Q: What are TSMC's plans for overseas expansion, and how will this affect the company's overall strategy? A: C.C. Wei highlighted that overseas expansion is driven by customer demand and supported by government incentives. The expansion in the US focuses on leading-edge technology, while Japan and Germany focus on specialty technologies. These expansions are not expected to impact each other negatively. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
