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Business Times
7 days ago
- Business
- Business Times
TSMC posts record quarterly profit on AI demand, but cautious on tariff impact
[TAIPEI] Taiwan Semiconductor Manufacturing Co (TSMC), the world's main producer of advanced artificial intelligence (AI) chips, posted record, forecast-beating quarterly profit on Thursday (Jul 17) but warned that future income might be hit by US tariffs, though perhaps not until the fourth quarter. Saying demand for AI was getting stronger and stronger, TSMC predicted another leap in sales for the third quarter and hiked its revenue outlook for the full year. It also noted that key client Nvidia had recently been allowed by the US government to resume sales to China of its H20 AI chip. 'China is a big market, and my customer can continue to supply the chip to the big market, and it's very positive news for them and in return it's very positive news for TSMC,' chief executive CC Wei told a press conference. But momentum for Q4 earnings could be different. 'We are taking into consideration the possible impact of tariffs and a lot of other uncertainties, so we are becoming more conservative,' Wei noted, though he added that TSMC had yet to see any changes in customer behaviour so far. In the April-June quarter, net profit hit a historic high of NT$398.3 billion (S$17.4 billion), up 60.7 per cent year-on-year and marking its fifth straight quarter of double-digit growth. That was well ahead of a NT$377.9 billion LSEG SmartEstimate. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up For the current quarter, it predicted a leap in revenue of up to 40 per cent and for the full year, it now estimates revenue growth of around 30 per cent in US dollar terms, up from a previous forecast of 'close to the mid-20s'. But while sales are roaring, TSMC said the New Taiwan dollar's appreciation against the US dollar – around 12 per cent so far this year – would dent margins. Its Q3 gross margin is expected to fall to between 55.5 per cent and 57.5 per cent, down from 58.6 per cent in the second quarter, also hurt by TSMC's ramp-up of investment in new US and Japanese factories. However, the company stuck to its capital expenditure plan for the year of US$38 billion to US$42 billion, and chief financial officer Wendell Huang said that it was very unlikely that such spending would suddenly drop going forward. TSMC announced plans for a US$100 billion US investment with US President Donald Trump at the White House in March, on top of US$65 billion pledged for three plants in the state of Arizona, one of which is up and running. But Trump has said semiconductor-specific tariffs could come soon. Taiwan was also threatened with a 32 per cent reciprocal tariff rate in April, although it has yet to be notified of an updated figure that some countries have received. Taiwan-listed shares in TSMC surged some 80 per cent last year but have climbed just 5 per cent for the year to date on worries about tariffs and unfavourable currency exchange rates. REUTERS
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Business Standard
7 days ago
- Business
- Business Standard
TSMC posts 60% jump in quarterly profit, handily beats market forecast
TSMC, the world's main producer of advanced AI chips, posted a 60 per cent jump in second-quarter profit to record levels that handily beat market forecasts on Thursday, though US tariffs and a strong Taiwan dollar could weigh on its outlook. Benefiting from surging demand for advanced chips used in artificial intelligence applications, Taiwan Semiconductor Manufacturing Co said net profit for April-June climbed to T$398.3 billion ($13.53 billion), its fifth straight quarter of double-digit growth. That was well ahead of a T$377.9 billion LSEG SmartEstimate drawn from 20 analysts. Trump's trade policies and threats to put tariffs on semiconductors have created much uncertainty for the global chip industry and TSMC, whose customers include Apple and Nvidia. TSMC announced plans for a $100 billion US investment with Trump at the White House in March, on top of $65 billion pledged for three plants in the state of Arizona, one of which is up and running. Taiwan-listed shares in TSMC surged some 80 per cent last year but have climbed just 5 per cent for the year to date on worries about tariffs and unfavourable currency exchange rates.
Time of India
07-07-2025
- Business
- Time of India
Foxconn second quarter revenue rises 15.82% on year
Taiwan's Foxconn , the world's largest contract electronics maker, reported record second-quarter revenue on strong demand for artificial intelligence products but cautioned about geopolitical and exchange rate headwinds. Revenue for Apple 's biggest iPhone assembler jumped 15.82% year-on-year to T$1.797 trillion, Foxconn said in a statement on Saturday, beating the T$1.7896 trillion LSEG SmartEstimate, which gives greater weight to forecasts from analysts who are more consistently accurate. Robust AI demand led to strong revenue growth for its cloud and networking products division, said Foxconn, whose customers include AI chip firm Nvidia. Smart consumer electronics, which includes iPhones, posted 'flattish' year-on-year revenue growth affected by exchange rates, it said. June revenue roses 10.09% on year to T$540.237 billion, a record high for that month. Foxconn said it anticipates growth in this quarter from the previous three months and from the same period last year but cautioned about potential risks to growth. "The impact of evolving global political and economic conditions and exchange rate changes will need continued close monitoring," it said without elaborating. U.S. President Donald Trump said he had signed letters to 12 countries outlining the various tariff levels they would face on goods they export to the United States, with the "take it or leave it" offers to be sent out on Monday. The Chinese city of Zhengzhou is home to the world's largest iPhone manufacturing facility, operated by Foxconn. The company, formally called Hon Hai Precision Industry, does not provide numerical forecasts. It will report full second quarter earnings on August 14. Foxconn's shares jumped 76% last year, far outperforming the 28.5% rise for the Taiwan market, but are down 12.5% so far this year, reflecting broader pressure on tech stocks rattled by Trump's tumultuous trade policy. The stock closed down 1.83% on Friday ahead of the revenue data release, compared with a 0.73% drop for the benchmark index.
Business Times
06-07-2025
- Business
- Business Times
Foxconn reports record Q2 revenue, cautions about geopolitical and exchange rate risks
[TAIPEI] Taiwan's Foxconn, the world's largest contract electronics maker, reported record second-quarter revenue on strong demand for artificial intelligence products but cautioned about geopolitical and exchange rate headwinds. Revenue for Apple's biggest iPhone assembler jumped 15.82 per cent year-on-year to NT$1.797 trillion (S$75.47 billion), Foxconn said in a statement on Saturday (Jul 5), beating the NT$1.7896 trillion LSEG SmartEstimate, which gives greater weight to forecasts from analysts who are more consistently accurate. Robust AI demand led to strong revenue growth for its cloud and networking products division, said Foxconn, whose customers include AI chip firm Nvidia. Smart consumer electronics, which includes iPhones, posted 'flattish' year-on-year revenue growth affected by exchange rates, it said. June revenue roses 10.09 per cent on year to NT$540.237 billion, a record high for that month. Foxconn said it anticipates growth in this quarter from the previous three months and from the same period last year but cautioned about potential risks to growth. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up 'The impact of evolving global political and economic conditions and exchange rate changes will need continued close monitoring,' it said without elaborating. US President Donald Trump said he had signed letters to 12 countries outlining the various tariff levels they would face on goods they export to the US, with the 'take it or leave it' offers to be sent out on Monday. The Chinese city of Zhengzhou is home to the world's largest iPhone manufacturing facility, operated by Foxconn. The company, formally called Hon Hai Precision Industry, does not provide numerical forecasts. It will report full second quarter earnings on Aug 14. Foxconn's shares jumped 76 per cent last year, far outperforming the 28.5 per cent rise for the Taiwan market, but are down 12.5 per cent so far this year, reflecting broader pressure on tech stocks rattled by Trump's tumultuous trade policy. The stock closed down 1.83 per cent on Friday ahead of the revenue data release, compared with a 0.73 per cent drop for the benchmark index. REUTERS
Time of India
05-07-2025
- Business
- Time of India
Foxconn second quarter revenue rises 15.82% on year
Taiwan's Foxconn , the world's largest contract electronics maker, reported record second-quarter revenue on strong demand for artificial intelligence products but cautioned about geopolitical and exchange rate headwinds. Revenue for Apple 's biggest iPhone assembler jumped 15.82% year-on-year to T$1.797 trillion, Foxconn said in a statement on Saturday, beating the T$1.7896 trillion LSEG SmartEstimate, which gives greater weight to forecasts from analysts who are more consistently accurate. Robust AI demand led to strong revenue growth for its cloud and networking products division, said Foxconn, whose customers include AI chip firm Nvidia. Smart consumer electronics, which includes iPhones, posted 'flattish' year-on-year revenue growth affected by exchange rates, it said. June revenue roses 10.09% on year to T$540.237 billion, a record high for that month. Foxconn said it anticipates growth in this quarter from the previous three months and from the same period last year but cautioned about potential risks to growth. "The impact of evolving global political and economic conditions and exchange rate changes will need continued close monitoring," it said without elaborating. U.S. President Donald Trump said he had signed letters to 12 countries outlining the various tariff levels they would face on goods they export to the United States, with the "take it or leave it" offers to be sent out on Monday. The Chinese city of Zhengzhou is home to the world's largest iPhone manufacturing facility, operated by Foxconn. The company, formally called Hon Hai Precision Industry, does not provide numerical forecasts. It will report full second quarter earnings on August 14. Foxconn's shares jumped 76% last year, far outperforming the 28.5% rise for the Taiwan market, but are down 12.5% so far this year, reflecting broader pressure on tech stocks rattled by Trump's tumultuous trade policy. The stock closed down 1.83% on Friday ahead of the revenue data release, compared with a 0.73% drop for the benchmark index.
