Categories
April 17, 2025 — Kathmandu
While Taiwan Semiconductor Manufacturing Co. (TSMC) is preparing to release its results for the first quarter of this year investors around the world are keeping an eye on the company. In the meantime analysts expect that the results will act as an important gauge for the semiconductor industry which is facing ongoing issues from the growing U.S.-China relations and increasing uncertainty regarding AI semiconductor demand.
TSMC is the world’s leading contract chipmaker and a key supplier to tech firms like Apple and Nvidia. It will announce a 57% rise in net profits for the first quarter of 2025. The figure is estimated to be NT$354.6 billion (US$10.92 billion). A rising demand for premium chips that are used in artificial intelligence-related applications is the reason behind this expansion.
Despite having solid results in its financials, TSMC faces significant risks that stem from the trade policies of U.S. President Donald Trump. It is believed that the Trump administration is looking at the possibility of imposing hefty tariffs on companies who haven’t built factories in America. This is a decision that could directly affect TSMC since the majority of its manufacturing takes place in Taiwan. Even though TSMC has pledged US$100 billion for U.S. investments, including 65 billion dollars for its plants in Arizona The continuing geopolitical tensions affect the stock of the company that has already dropped 20% in 2025.
The company’s earnings call, scheduled for the coming week, will offer insight into TSMC’s revenue outlook and capital spending plans. These plans could reach up to US$42 billion this year. Investors will focus on TSMC’s expectations for AI chip demand and the potential risks related to tariffs.
TSMC’s performance could serve as a benchmark for the whole chip industry. The earnings announcement is likely to affect the investor mood. It will also impact the value of chip stocks around the world, which will highlight TSMC’s role as a beacon in the semiconductor market.
Keep watching AtoZTechWorld to get real-time information about China’s changing approach to digital regulation of assets and market control.
