Despite uncertainties from the U.S.-China tech conflict, TSMC remains a key supplier to Apple and Nvidia, with AI and smartphone chips expected to drive growth. The company reported a 57% rise in net income and anticipates mid-20% growth for 2025. TSMC is also expanding internationally, with a new factory in Arizona and plans for a German plant in Dresden. However, executives noted that the most advanced semiconductors would continue to be produced domestically. The AI boom, led by applications like ChatGPT, has spurred significant data center investments, though concerns about a potential bubble persist.
Key takeaways:
- TSMC projects quarterly sales and capital expenditure ahead of analysts’ estimates, with plans to spend up to US$42 billion on technology and capacity in 2025.
- Geopolitical tensions between the U.S. and China have led TSMC to expand manufacturing abroad, with new plants planned in Europe focusing on AI chips.
- TSMC's strong performance is driven by robust AI chip demand, despite concerns about a potential bubble in the AI market.
- TSMC plans to continue producing the most advanced semiconductors domestically, while its Arizona factory will house cutting-edge technology in the future.