Latest news with #TaiwanSemiconductorManufacturingCo
2 days ago
- Business
Asian shares mostly advance after Wall Street cruises to more records
MANILA, Philippines -- Asian shares were mostly higher on Friday after Wall Street rose to records following better-than-expected updates on the economy and a mixed set of profit reports from big U.S. companies. Japan's Nikkei 225 edged 0.1% lower to 39,854.28 as traders stayed on the sidelines ahead of an election for the upper house of parliament on Sunday that could wipe out the ruling coalition's upper house majority. The government reported that core inflation excluding volatile food and energy prices rose to 3.3% in June from a year earlier, slowing from 3.7% in May but still above the central bank's 2% target. Hong Kong's Hang Seng index added 0.7% to 24,676.64, while the Shanghai Composite index advanced 0.3% to 3,528.90. Taiwan's Taiex climbed 0.9%, helped by a 2.2% gain for Taiwan Semiconductor Manufacturing Co. On Thursday, TSMC reported its net income soared nearly 61% in the last quarter from a year earlier. The world's largest contract chip maker said it's seeing strong demand from artificial-intelligence and other customers. On Thursday, TSMC's stock that trades in the United States rose 3.4%. Australia's S&P/ASX 200 rose 1.5% to 8,765.00, and the Kospi in South Korea shed 0.6% to 3,173.69. India's Sensex shed 0.3%. 'Asia's riding the global rally wave, AI fever refuses to break, and even the Fed is making soothing noises,' Stephen Innes of SPI Asset Management wrote in a commentary. 'But underneath all the sunshine is a market running hot, with volatility on sale and positioning still cautious.' On Thursday, the S&P 500 climbed 0.5% to top its all-time high set a week ago, closing at 6,297.36. The Dow Jones Industrial Average rose 0.5% to 44,484.49, and the Nasdaq composite added 0.7% to its own record set the day before, climbing to 20,885.65. Trading was calmer than on Wednesday, when President Donald Trump rocked financial markets by saying he had discussed the 'concept' of firing the chair of the Federal Reserve, though he said he was unlikely to do so. Such a move could help Wall Street get the lower interest rates investors love, but would also risk a weakened Fed unable to make the unpopular moves needed to keep inflation under control. Apart from TSMC, other stocks involved in AI also climbed. A 1% gain for Nvidia was one of the strongest forces pushing upward on the S&P 500. PepsiCo jumped 7.5% after delivering revenue and profit that topped Wall Street's expectations. Treasury yields were mixed following several better-than-expected reports on the economy. One said that shoppers upped their spending at U.S. retailers by more last month than economists expected. Such spending, along with a relatively solid jobs market, has helped keep the U.S. economy out of a recession. A separate report said that fewer U.S. workers applied for unemployment benefits last week, which could be a signal of limited layoffs. A third suggested unexpectedly strong growth in manufacturing in the mid-Atlantic region. Such solid data could keep the Federal Reserve on pause when it comes to interest rates. The Fed has been keeping rates steady this year, after cutting them at the end of last year. The Fed's chair, Jerome Powell, has been insisting that he wants to wait for more data about how Trump's tariffs will affect the economy and inflation before the Fed makes its next move. That's because while lower interest rates could boost the economy and prices for investments, they would also give inflation more fuel. Prices may already be starting to feel the upward effects of tariffs, based on the latest data. In other dealings on Friday, U.S. benchmark crude oil rose 33 cents to $66.56 per barrel. Brent crude, the international standard, also was up 33 cents, at $69.85 per barrel. The U.S. dollar edged slightly higher to 148.67 against the Japanese yen from 148.61. The euro rose to $1.1623 from $1.1596. ___ AP Business Writer Stan Choe contributed.
Business Times
3 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
3 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.
BusinessToday
3 days ago
- Business
- BusinessToday
TSMC Poised For Record Q2 Profit Amid Tariff, Currency Worries
Taiwan Semiconductor Manufacturing Co (TSMC) is expected to post a record-breaking net profit of T$377.9 billion (US$12.86 billion) for the second quarter, a 52% jump year-on-year, driven by strong demand for advanced AI chips supplied to tech giants like Nvidia and Apple. While Q2 revenue has already been flagged to rise 38.6%, concerns linger over potential US tariffs on Taiwanese semiconductors and the impact of a strengthening Taiwan dollar, which has appreciated 12% against the greenback this year. A 1% appreciation typically trims 0.4 percentage points off TSMC's gross margin. The earnings will be announced at 0530 GMT, followed by a guidance call at 0600 GMT. TSMC shares are up 5% year-to-date, slowing from last year's 80% surge. Reuters Related
Mint
4 days ago
- Business
- Mint
TSMC quarterly profit seen hitting record but Trump tariffs, forex a concern
Analysts expect a 52% surge in second-quarter profit TSMC benefiting from surge towards AI Earnings call at 0600 GMT TAIPEI, - TSMC, the world's main producer of advanced AI chips, is expected to post a 52% jump in second-quarter profit to record levels on Thursday, though U.S. tariffs and a strong Taiwan dollar could weigh on its outlook. Taiwan Semiconductor Manufacturing Co, the world's largest contract chipmaker and a key supplier to Nvidia and Apple, is forecast to report net profit of T$377.4 billion for the three months through June 30, according to an LSEG SmartEstimate compiled from 21 analysts. SmartEstimates place greater weight on forecasts from analysts who are more consistently accurate. The company will report the headline profit figure at 0530 GMT which will be followed by an earnings call from 0600 GMT that will include third-quarter guidance. TSMC has already flagged a rise in second-quarter revenue of 38.6%. Any profit result above T$374.68 billion would mark the company's highest-ever quarterly net income and its sixth consecutive quarter of profit growth. It remains unclear just how much U.S. President Donald Trump's tariffs will affect TSMC. Taiwan was threatened with a 32% reciprocal tariff rate in April but has yet to be notified of an updated figure that some countries have received. Trump also said this month that tariffs on semiconductors are likely to come soon. The company said in June that U.S. tariffs were having some indirect impact, noting they can lead to slightly higher prices, which may in turn weigh on demand. In March, TSMC announced a $100 billion investment in the U.S. alongside Trump at the White House, on top of $65 billion pledged for three Arizona plants - two of which have been built. Another key issue is the Taiwan dollar's 12% appreciation against the greenback so far this year. TSMC has said a 1% appreciation in the Taiwan dollar typically reduces its gross margin by 0.4 percentage points. In June, the company said that strengthening in the Taiwan dollar had shaved more than 3 percentage points off its gross margin. Shares in TSMC surged some 80% last year but have climbed just 5% for the year to date on worries about tariffs and unfavourable currency exchange rates. This article was generated from an automated news agency feed without modifications to text.
