As electronic companies scramble to gather essential components before the U.S. President Donald Trump’s series of tariffs take effect, Taiwan Semiconductor Manufacturing Company Limited (TSMC) reap a benefit out of it as its sales and revenue increase.
The Asia chipmaker saw its revenue in April surged by 48%, with its monthly sales reaching NT$349.6 billion, or about US$ 11.6 billion. This surge may push the company’s revenue growth in the second-quarter ahead of the average analysts’ estimate of 38% increase.
TSMC also reassures the tech industry of the strong demand despite the ongoing trade war that throws the outlooks of almost every product off the window. The company’s position at the center of the tech supply chain allows it to act as a barometer for global tech spending.
Still, the chipmaker may face turbulence from the appreciation of Taiwan dollar. Most of the company’s business and transactions are conducted in US dollars, thus the appreciation of its local currency could impact its margin. According to the company, for every 1% appreciation in Taiwan dollar, the company’s operating margin would drop by 0.4 percentage points.
There is also a complication with the U.S. Although the Trump administration may remove some restrictions set by the previous administration, it also imposed new rules that seem to pressure several nations to negotiate, impacting TSMC’s business.
