Latest news with #NationalDevelopmentCouncil
Yahoo
2 days ago
- Business
- Yahoo
Taiwan Semiconductor Rides AI Wave To Double-Digit Revenue Gains in July
Taiwan Semiconductor Manufacturing Co (NYSE:TSM) on Friday reported consolidated net revenue of approximately 323.17 billion New Taiwanese dollars (roughly $10.66 billion) for July 2025, up 22.5% quarter-over-quarter, backed by the artificial intelligence frenzy. The contract chipmaker's topline rose by 25.8% year-over-year (Y/Y). The company's revenue for January through July 2025 reached 2.1 trillion New Taiwanese dollars (roughly $69.3 billion), rising 37.6% Y/Y. Taiwan Semiconductor stock gained 23% August 7, Taiwan Semiconductor jumped ~5% in overnight trade after Taiwanese officials confirmed the chipmaker is exempt from President Donald Trump's proposed 100% tariffs on semiconductor chips. National Development Council chief Liu Chin-ching told parliament that Taiwan Semiconductor qualifies for the exemption because it operates U.S. factories, including fabrication plants in Arizona, under its $165 billion investment commitment. The move eases investor concerns as Taiwan Semiconductor supplies chips to major U.S. clients like Apple (NASDAQ:AAPL) and Nvidia (NASDAQ:NVDA). CEO C.C. Wei has said U.S. tariffs pose 'indirect headwinds' but noted that demand for AI chips 'consistently outpaces supply,' keeping the company well-positioned despite trade tensions. On July 17, the chipmaker gained over 4% after it reported second-quarter results that exceeded analyst expectations, fueled by strong global demand for its advanced processors used in artificial intelligence. View more earnings on TSM Taiwan Semiconductor reported net sales of $30.07 billion, up 38.6% Y/Y and 11.3% Q/Q, beating its guidance range and topping the $30.04 billion consensus. Net income rose 60.7% Y/Yto $2.47 per share, above the $2.37 estimate. Gross margin expanded to 58.6%, and operating margin climbed to 49.6%, driven by high demand for 3-nm and 5-nm technologies, which accounted for 60% of total revenue. The company guided third-quarter revenue between $31.8 billion and $33.0 billion, with gross margin projected at 55.5% to 57.5% and operating margin at 45.5% to 47.5%, supported by continued strength in leading-edge process technologies. Key revenue drivers included High-Performance Computing (60% of revenue) and Smartphones (27%), with North America contributing 75% of sales. Management also cited positive momentum from the U.S. government easing certain chip export restrictions to China, enabling Nvidia to resume H20 AI chip sales. Chairman C.C. Wei highlighted a $100 billion expansion of U.S. manufacturing investment, adding to a prior $65 billion commitment for three Arizona fabs. However, he cautioned that potential U.S. tariffs on Taiwan could temper fourth-quarter momentum despite no immediate change in customer orders. On August 7, Wedbush analyst Daniel Ives called Apple's new $100 billion U.S. investment a strategic move to ease Trump administration tensions and secure long-term growth under tariff pressure. Ives linked the plan to Apple's partnerships with Taiwan Semiconductor and other chipmakers, projecting over 19 billion U.S.-made chips in 2025. He said the initiative strengthens domestic supply chains and boosts Apple's standing with the White House, even as large-scale U.S. iPhone production remains unlikely. Price Action: TSM stock is trading higher by 0.13% to $242.93 premarket at last check on Friday. Photo by Sundry Photography on Shutterstock Up Next: Transform your trading with Benzinga Edge's one-of-a-kind market trade ideas and tools. Click now to access unique insights that can set you ahead in today's competitive market. Get the latest stock analysis from Benzinga? TAIWAN SEMICONDUCTOR (TSM): Free Stock Analysis Report This article Taiwan Semiconductor Rides AI Wave To Double-Digit Revenue Gains in July originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved. 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
The Star
4 days ago
- Business
- The Star
Relief in Taiwan as Trump's 100% chip tariff fails to bite, but it's too early to relax
TAIPEI: Taipei heaved a temporary sigh of relief even as US President Donald Trump said that he would slap a shocking 100 per cent tariff on imports of semiconductors, the crucial components that form the backbone of Taiwan's economy. That is because companies that commit to making chips in the US would be exempted, according to Trump, which would mean that Taiwan Semiconductor Manufacturing Company (TSMC), the crown jewel of the island's tech industry, would likely be spared. The firm, which is the world's largest contract manufacturer of chips, has so far pledged US$165 billion (S$212 billion) in investment to build six state-of-the-art fabs, or semiconductor plants, in the US state of Arizona. But while things don't look too dire now, the impact of the tariff on Taiwan's chip industry could yet be far-reaching. Large clients of smaller Taiwanese chip suppliers could demand that they move some of their production to the US to sidestep the punishing duties. This could lead to a decline in Taiwan-based chip production and affect the island's position as a key part of the global tech supply chain, say analysts. And while MTrump's latest tariff measure is part of a push to boost domestic chip manufacturing, it could lead to higher prices of electronic devices such as smartphones, which could in turn depress demand for such devices and the chips that drive them. Such an outcome would mean uncertainty for Taiwan's semiconductor industry. Still, on Aug 7, TSMC stocks surged nearly five per cent to close at a record high of NT$1,180 (US$39.53), reflecting investor confidence in the wake of Trump's announcement. Officials in Taiwan were also cautiously optimistic. Speaking to lawmakers during a parliamentary briefing on Aug 7, National Development Council chief Liu Chin-ching argued that a steep 100 per cent tariff rate would not necessarily be disastrous, even for Taiwan's smaller chipmakers that do not have a US presence. 'Taiwan currently holds a leading position in the world (in chipmaking) and I believe that if the leader and competitors are all on the same starting line, the leader will continue to lead,' he said. The island is a global powerhouse in chipmaking, with 60 per cent of the world's chips and almost all of the most advanced ones produced there. But experts warned that the lack of details about how the new tariff would be applied means that it is still early days yet to assess its full impact. 'The scope and mechanism of the chip tariff remain unclear. Further developments will need to be closely monitored,' said Joanne Chiao, assistant research manager at Trendforce, a Taiwanese tech research firm. For starters, how much manufacturing a company would need to commit to the US to qualify for a tariff exemption is unclear. It is also unknown if Trump's exemption would cover only chips produced entirely on domestic soil, or also the semiconductors that foreign companies with a US presence, such as British firm Arm, or American companies import from overseas. American chip designers such as Qualcomm typically send their designs to TSMC to be manufactured in Taiwan before the chips are imported into the US. Moreover, more clarity is needed on whether the new tariff would apply to raw semiconductors and integrated circuits, or also chips in end devices such as smartphones and laptops. During the first quarter of 2025, only around four per cent of Taiwan's total exports of electronic components, including semiconductors, were shipped directly to the US. The vast majority of Taiwan-made chips were sent to other countries where they were assembled into consumer electronics. Professor Julien Chaisse, an international trade expert at City University of Hong Kong, said that it would be 'misleading' to think this would mean that Taiwan's chip exports could be naturally immune to Trump's tariff measure. 'The US government doesn't need a direct shipment to apply pressure – it can change how it interprets rules of origin,' he told The Straits Times. 'If Washington starts insisting that any product with a certain percentage of Taiwanese-made components falls under the tariff, then the effect spreads quickly,' he said. Prof Chaisse added that Trump's tariff also posed a threat to Taiwan's future position in the global tech supply chain. 'Larger buyers may start demanding more Taiwanese capacity be built inside the US, just to sidestep tariffs,' he said, noting that this would, in turn, drain investment from domestic expansion in Taiwan. 'This will have consequences for how Taiwan grows its chip sector over the next five years,' he added. Ultimately, Trump's push to rebuild chip manufacturing in the US will drive up costs for everyone in the supply chain. 'A high tariff on chips would inevitably raise the price of smartphones and laptops, which would also hurt demand for electronic products,' said Liu Pei-chen, an analyst at the Taiwan Institute of Economic Research. 'This will bring a lot of uncertainty to the chip industry,' she added. For now, however, Taiwan retains a major advantage – the US will still need to rely on the island for its semiconductor needs, particularly for advanced chips. Taiwan's intricately connected semiconductor ecosystem, which was built up over decades, is not easily replicated. The island's dominance in the sector extends to the technical prowess and efficiency among its chip engineers, which means it is not a simple matter of plonking a factory wherever one wishes. 'Even with the big investments happening in US fabs, it will take years before local production can cover demand,' said Prof Chaisse. 'In the end, this feels like pressure aimed at getting more investment from Taipei. Not because Taiwan is a threat, but because Trump wants quick wins he can point to.' - The Straits Times/ANN
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Business Standard
5 days ago
- Business
- Business Standard
Chipmaker TSMC 'exempt' from Donald Trump's 100% tariff, says Taiwan
Taiwanese chipmaking firm TSMC "is exempt" from US President Donald Trump's 100 per cent tariff on semiconductor chips, Taipei said Thursday, according to a report by news agency AFP. National Development Council chief Liu Chin-ching briefed his country's legislature that because TSMC has factories in the US, TSMC is exempt from the tariffs. On Wednesday, US President Donald Trump announced that Washington would introduce a 100 per cent tariff on computer chip imports. He stated that companies manufacturing chips within the US would be exempt from the import duty. Trump highlighted that the new tariff rate would apply to 'all chips and semiconductors coming into the United States", except for firms that had already committed to manufacturing in the US or were in the process of establishing production facilities. Trump stated, 'If, for some reason, you say you're building and you don't build, then we go back and we add it up, it accumulates, and we charge you at a later date, you have to pay, and that's a guarantee.' Global demand for computer chips has been increasing steadily, with sales rising by 19.6 per cent in the year ending in June, according to the World Semiconductor Trade Statistics organisation. 'Much of semiconductor sector to be exempt' Martin Chorzempa, senior fellow at the Peterson Institute for International Economics, stated that much of the sector would be exempt as there has been significant investment in chip manufacturing within the US. Chorzempa added that, since chips produced in China would not be exempt, those made by SMIC or Huawei would also fall under the tariffs, as such chips typically entered the US market embedded in devices assembled in China. He also underlined that the impact of the tariffs might be minimal if they were not accompanied by a component tariff. Under Joe Biden, the Commerce Department in 2024 secured commitments from all five leading-edge semiconductor companies to set up chip factories in the US as part of a national initiative. Brian Jacobsen, chief economist at investment advisory firm Annex Wealth Management, said that large and cash-rich companies with the capacity to build in the US stood to gain the most from the current environment, describing it as a case of "survival of the biggest". The proposed tariffs are expected to be primarily directed at China, with trade negotiations between Washington and Beijing still ongoing. South Korea's chief trade envoy, Yeo Han-koo, stated on Thursday that Samsung Electronics and SK Hynix would not be subject to the 100 per cent US tariffs on said South Korea would receive the most favourable US tariff treatment on semiconductors under the trade agreement between Seoul and Washington.
Bloomberg
5 days ago
- Business
- Bloomberg
TSMC Shares Surge as Taiwan Says Firm Exempt From Trump Tariffs
Taiwan said its leading chip manufacturer will not have to pay a 100% tariff on such imports to the US, helping drive Taiwan Semiconductor Manufacturing Co. shares to a record. 'TSMC is exempted from the chip tariffs because it has set up plants in the US,' Liu Chin-ching, minister in charge of the National Development Council, said in Taipei on Thursday. As for other Taiwanese companies that may be affected by the levies, they 'shall continue to stay ahead' if competitors face the same charges.
The Sun
5 days ago
- Business
- The Sun
Taiwan exempts TSMC from Trump's 100% semiconductor tariffs
TAIPEI: Taiwanese officials confirmed that Taiwan Semiconductor Manufacturing Company (TSMC) will not be subject to former US President Donald Trump's proposed 100% tariff on semiconductor chips. National Development Council chief Liu Chin-ching stated TSMC's exemption is due to its existing manufacturing facilities in the US. 'Because Taiwan's main exporter is TSMC, which has factories in the United States, TSMC is exempt,' Liu said during a parliamentary briefing. Other Taiwanese chipmakers will still face the full tariff, though Liu noted competitors would be equally affected. 'Taiwan currently holds a leading position in the world and I believe that if the leader and competitors are on the same starting line, the leader will continue to lead,' he added. The government plans to monitor the situation and provide short-term and medium-term support measures. Trump announced the tariff plan at the White House, stating it would apply a 100% levy on imported chips and semiconductors. He did not specify when the policy would take effect but clarified exemptions for companies with US-based production. TSMC, the world's largest contract chipmaker, supplies major tech firms like Nvidia and Apple. Taiwan produces over half of the world's semiconductors and nearly all high-end chips. Trump has previously accused Taiwan of undermining the US chip industry, despite TSMC's planned $100 billion US investment. Taiwan has also committed to increased US energy purchases and higher defence spending to mitigate trade tensions. A temporary 20% tariff on other Taiwanese goods remains in place as negotiations continue. - AFP
