WSJ What’s News
The Uncertain Road Ahead for Chip Makers
Apr 17, 2025
TSMC's impressive 60% profit surge raises questions about sustaining momentum amid potential U.S. export restrictions to China. Japan and Italy are seeking alignment with the White House on trade matters. The podcast also discusses the ripple effects of recent dollar fluctuations impacting international trade. Emphasis is placed on Taiwan's vital role in semiconductor exports and the strategies companies like NVIDIA are adopting to navigate tech tariffs. Political alignments in Europe further underline the complexities of global trade dynamics.
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Quick takeaways
- TSMC's impressive 60% profit rise signals strong demand in the semiconductor industry, despite looming trade restrictions and potential U.S. tariffs.
- The decline of the U.S. dollar complicates international trade, pushing foreign sellers to adapt to higher costs for U.S. consumers.
Deep dives
TSMC's Strong Earnings Amidst Trade Challenges
Taiwan Semiconductor Manufacturing Co. (TSMC) reported impressive earnings, with a 60% profit jump, despite facing trade restrictions and uncertainty regarding U.S. tariffs. As the largest contract chipmaker, TSMC's performance is crucial for major clients like Apple and NVIDIA, setting the tone for the semiconductor industry's outlook amid potential tariffs looming from the U.S. The company encouraged its supply chain to maintain orders despite the threat of future tariffs, indicating that current demand remains strong. TSMC is also exploring investments in the U.S. to enhance its position and possibly secure exemptions from tariffs, reflecting a strategic pivot to mitigate risks associated with U.S.-China trade tensions.
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