TSMC expects record profits | Luxembourg word
Although the tariffs imposed by the USA had a « certain » indirect influence on the business of the company, said the President and CEO of TSMC, Che-Chia Wei that the business would remain « very strong » in connection with AI. Taiwan Semiconductor Manufacturing Company is the largest chip manufacturer in the world and is one of his customers.
« This year, our sales and profit will achieve new historical highs, » he said at the company’s annual general meeting. Since the demand for AI was « very high », TSMC tried to « increase its production capacity in order to satisfy customers ».
This year our sales and profit will reach new historical highs.
Che-Chia Wei
For years, TSMC has been under the pressure to shift a larger part of its production from Taiwan, where most of its production facilities are located, as the threats from China are excited. In recent years, the company has started building factories in the USA, Europe and Japan.
More factories outside of Taiwan?
Last week, the Bloomberg news agency reported on anonymous sources that it is planning to build a factory for advanced chips in the United Arab Emirates. However, Che-Chia denied that the company is planning to build factories in the Middle East. « I think the rumor mill is bubbling, » commented Mr. Wei.
TSMC announced that sales in April was $ 349.6 billion New Taiwan (10.3 billion euros), which corresponds to an increase of 48.1 percent compared to the previous year and 22.2 percent compared to March.
Chip giant TSMC starts a large project in Europe
Mr. Wei explained to the company’s shareholders that TSMC’s sales could be « impaired » if the tariffs would lead to higher prices and a lower demand for chips, but added: « Our business will remain very good ». « I’m not afraid of anything, I’m just afraid of a decline in the global economy, » he added.
I’m not afraid of anything, I’m just afraid of a decline in global economy.
Che-Chia Wei
US President Donald Trump believes that Taiwan « stolen » the US chip industry and threatens punishment of up to 100 percent. The Taiwanese giant said in March that he would invest $ 100 billion in the United States, hoping to protect Taiwan from tariffs.
Trump imposed tariffs of 32 percent on imports from the island before exposing this measure for 90 days. However, he assumed semiconductors. In mid-April, the US Ministry of Trade initiated an investigation to determine whether the overweight of imports in the areas of semiconductors and pharmaceuticals are a risk of the US national security.
