17 April 2025
If you are covering the latest financial results from TSMC, please find below a comment from Ben Barringer, global technology analyst at Quilter Cheviot:
“For TSMC it is very much a case of keep calm and carry on. It’s latest set of figures highlight a very resilient business in the face of significant tariff threats for the semiconductor industry. Revenues grew by 35%, while margins remained very robust. Much of the demand continues to come from artificial intelligence and this shows no sign of abating.
“Pleasingly, the company has also maintained its guidance for both sales and capex. Some of this may be boosted in the short-term as companies stockpile, but TSMC was keen to stress it has seen no impact of the tariffs yet and customers continue to keep up with their orders. The business has no needs to change tack given numbers are for now not being impacted. Clearly this may still see a hit down the line, but it is good to see TSMC is not shying away.
“One thing that could come to help it in the near-term, too, is the fact it continues to pump money into the US. It will continue to stress this fact to President Trump as it, and the whole industry, seeks out a more favourable tariff regime compared to consumer goods. TSMC’s shares have de-rated significantly over the past few months and is now starting to look cheap given this set of results. It remains a world class company and within the semiconductor industry, we can see it bouncing back strongly once the economic environment is clearer.”
