The world’s largest contract chipmaker, Taiwan Semiconductor Manufacturing Co (TSMC), is set to report a 30% increase in second-quarter profit, driven by strong demand for chips used in artificial intelligence (AI) applications. Despite this positive outlook, TSMC’s Taipei shares fell 4% following comments from Donald Trump regarding Taiwan’s chip business. Trump’s remarks sparked concerns among investors, causing TSMC’s American Depository Receipts to slide by 8%.
While Trump’s comments may have political implications, industry experts believe that they will not significantly impact market fundamentals. Major companies remain optimistic about AI and continue to invest heavily in the technology, driving demand for TSMC’s chips. The company is expected to announce a net profit of T$238.8 billion ($7.33 billion) for the second quarter, showcasing its strong position in the semiconductor industry. Additionally, TSMC’s capital expenditure plans, including investments in new factories overseas and advanced technologies, will be a focal point during the upcoming earnings call.
