Latest news with #Hsinchu
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
South China Morning Post
3 days ago
- Business
- South China Morning Post
TSMC says tariffs have some impact but AI demand remains robust
Taiwan Semiconductor Manufacturing Company (TSMC) said on Tuesday that US tariffs are having some impact on the company but demand for artificial intelligence (AI) remains strong and continues to outpace supply. US President Donald Trump's trade policies have created much uncertainty for the global chip industry and TSMC, the top producer of the world's most advanced semiconductors whose customers include Apple and Nvidia. Chief executive officer C. C. Wei, speaking at the company's annual shareholders meeting in the northern Taiwanese city of Hsinchu on Tuesday, said they have not seen any changes in customer behaviour due to tariff uncertainty and the situation may become clearer in coming months. 'Tariffs do have some impact on TSMC, but not directly. That's because tariffs are imposed on importers, not exporters. TSMC is an exporter. However, tariffs can lead to slightly higher prices, and when prices go up, demand may go down,' he said. The TSMC logo is displayed on a building in Hsinchu, Taiwan April 15, 2025. Photo: Reuters 'If demand drops, TSMC's business could be affected. But I can assure you that AI demand has always been very strong and it's consistently outpacing supply.'
Malay Mail
3 days ago
- Business
- Malay Mail
Fuelled by AI frenzy, TSMC eyes record profit in 2025
HSINCHU (Taiwan), June 3 — Taiwanese chip titan TSMC said Tuesday that it expected to see record earnings this year as it increased semiconductor production capacity to meet soaring demand for AI technology. Taiwan Semiconductor Manufacturing company is the world's largest contract chipmaker and counts Nvidia and Apple among its clients. While US tariffs have had 'some' indirect impact on the firm, chairman and chief executive CC Wei said the artificial intelligence business would remain 'very strong'. 'Our revenue and profit this year will set new historical highs,' he told the company's annual shareholders meeting. With AI demand 'very high', the company was trying to 'increase production capacity to satisfy our customers', Wei said. But he denied reports that the company was planning to build factories in the Middle East. TSMC has been under pressure for years to move more of its production away from Taiwan, where the bulk of its fabrication plants are located, amid worries about China. Beijing claims the island is part of its territory and has threatened to use force to bring it under its control. The chip firm has in recent years broken ground for plants in the United States, Europe and Japan. Bloomberg News, citing unnamed sources, reported last week that it was considering building an advanced facility in the United Arab Emirates. 'I think rumours are really flying everywhere,' Wei said. TSMC last month reported sales of NT$349.6 billion (RM49 billion) for April, a rise of 48.1 per cent from a year earlier and up 22.2 per cent from March. The surge came after US President Donald Trump's global tariff blitz spurred companies to stock up, owing to fears that higher levies were in the pipeline. Wei told shareholders that TSMC's business 'may be affected' if tariffs force up prices and demand for chips falls, but he added: 'Our business will still be very good.' 'I am not afraid of anything, I am only afraid that the world economy will decline,' he added. TSMC has been in the crosshairs of Trump, who has accused Taiwan of stealing the US chip industry. There had been hopes TSMC's plan to invest an additional US$100 billion in the United States would shield Taiwan from new tariffs. Trump still imposed a 32 per cent duty on imports from the island as part of his sweeping tariffs — which were later paused for 90 days — but excluded semiconductors. Washington has launched 'national security' probes into the sector, which could pave the way for levies on chips and chipmaking equipment. — AFP
CNA
3 days ago
- Business
- CNA
TSMC says tariffs have some impact but AI demand robust
HSINCHU, Taiwan : U.S. tariffs are having some impact but demand for artificial intelligence (AI) remains strong and continues to outpace supply, the chief executive of Taiwanese chipmaker TSMC said on Tuesday. U.S. President Donald Trump's trade policies have created much uncertainty for the global chip industry and TSMC, the top producer of the world's most advanced semiconductors whose customers include Apple and Nvidia. C.C. Wei, speaking at the company's annual shareholders meeting in the northern Taiwanese city of Hsinchu, said they have not seen any changes in customer behaviour due to tariff uncertainty and the situation may become clearer in coming months. "Tariffs do have some impact on TSMC, but not directly. That's because tariffs are imposed on importers, not exporters. TSMC is an exporter. However, tariffs can lead to slightly higher prices, and when prices go up, demand may go down," he said. "If demand drops, TSMC's business could be affected. But I can assure you that AI demand has always been very strong and it's consistently outpacing supply." In April, the company, the world's largest contract chipmaker, gave a bullish outlook for the year on robust demand for AI applications.
Reuters
3 days ago
- Business
- Reuters
TSMC says tariffs have some impact but AI demand robust
HSINCHU, Taiwan, June 3 (Reuters) - U.S. tariffs are having some impact but demand for artificial intelligence (AI) remains strong and continues to outpace supply, the chief executive of Taiwanese chipmaker TSMC ( opens new tab said on Tuesday. U.S. President Donald Trump's trade policies have created much uncertainty for the global chip industry and TSMC, the top producer of the world's most advanced semiconductors whose customers include Apple (AAPL.O), opens new tab and Nvidia (NVDA.O), opens new tab. C.C. Wei, speaking at the company's annual shareholders meeting in the northern Taiwanese city of Hsinchu, said they have not seen any changes in customer behaviour due to tariff uncertainty and the situation may become clearer in coming months. "Tariffs do have some impact on TSMC, but not directly. That's because tariffs are imposed on importers, not exporters. TSMC is an exporter. However, tariffs can lead to slightly higher prices, and when prices go up, demand may go down," he said. "If demand drops, TSMC's business could be affected. But I can assure you that AI demand has always been very strong and it's consistently outpacing supply." In April, the company, the world's largest contract chipmaker, gave a bullish outlook for the year on robust demand for AI applications.
