TSMC Optimal on Outlook as a robust AI claim -compensation delay rate

By Wenyee Lee, Faith Hung and Ben Blanchard Taipei (Reuters) -TSMC gave a bullish outlook for the year on a strong demand for AI applications, adding that there was uncertainty about US rates, but had to see the largest manufacturer of the world’s largest contract disc. The Taiwanese company, a bell for the global chip industry, stood at its annual sales and capital expenditure outlook on Thursday, predicting the revenue of the AI ​​drive for artificial intelligence (AI) to double. The Frankfurt-listed shares jumped 5% in the morning trading. The forecast comes despite a bunch of windwind: the tightening of US export control on china slides, including a recent decision to combat sales of an important Nvidia product, threats of US President Donald Trump to put rates on semiconductors, as well as his planned broader reciprocal levies. “We are definitely aware of the potential impact of all the recent tariff announcements, especially the impact on the market demand,” said CC Wei, CEO of Taiwan Semiconductor Manufactor Co. “After saying this, we have not seen any change in the behavior of our clients so far. So we stick to our predictions,” he said. TSMC is not involved in tariff talks, Wei added, which announced an extra $ 100 billion investment in the United States last month while standing next to Trump in the White House. “This kind of tariff discussion is between countries. We are a private company,” he said. Wei also said that TSMC is not talking to other companies about the formation of joint ventures without expanding. His remarks follow media reports that TSMC can take an interest in a joint venture with the US Chip Company Intel. CFO Wendell Huang said capital expenditure for this year is expected to be between $ 38 billion and $ 42 billion, the same forecast on the last earnings call, in January. For the second quarter, it expects an income of $ 28.4- $ 29.2 billion, with a $ 20.8 billion overriding a year earlier and for the full year it expects turnover growth about between 20% and 30%. Gary Tan, a portfolio manager at Allspring Global Investments, says TSMC is in the strongest position among chip enterprises to pass on any tariff -related price increases to customers. The net profit for January-March climbed from 60% to $ 361.6 billion ($ 11.1 billion) year-on-year, the fourth consecutive quarter of a double-digit growth and beat a $ 354.6 billion T-Martestimate. In a sign that US controls over the export of Chip to China have their desired effects, TSMC’s revenue from China has dropped to 7% of its total sales versus 9% a year earlier, while North America yielded 77%, from 69%. The planned US investment of TSMC, now at $ 165 billion, is central to the US chip industry and to bring more of its production to US land will solve a major risk of supply chain for customers who also include Qualcomm and advanced micro -devices. Like many other chips, TSMC’s shares have dropped this year. The Taipei-listed shares are about 20%lower, their worst start to a year in at least three decades as foreign investors flee. Foreign investors have sold $ 8.66 billion to TSMC shares so far this year after buying $ 2 billion last year and $ 10.4 billion in 2023, Goldman Sachs said in a report. Other factors that have sentiment include investor jitters about spending on AI infrastructure and competitive threats such as the Chinese boot Deepseek’s launch of cheaper AI models. Although the earnings report came to the market in Taipei, the optimistic results helped lift shares of Japanese technical firms and some European companies. On Wednesday, Asml, the world’s largest computer disk supplier, said the rates increased the uncertainty over its prospects for 2025 and 2026, but stood with its annual leadership. ($ 1 = 32,4770 Taiwan-dollars) (Reporting by Wen-Yee Lee, Faith Hung and Ben Blanchard; Additional Reporting by Ankur Banerjee in Singapore; Write by Anne Marie Roantree; Editing by Miyoung Kim and Edwina Gibbs) first published: 17 April 2025, 02:21 pm ist