Conference Call Held After Strong Q1 Results
Annual Growth Target for This Year Maintained at Mid-20% Range
30% of Company’s Cutting-Edge Semiconductors to Be Supplied from the US
TSMC Chairman and CEO Wei Zhejia announced on the 6th of last month (local time) at the White House the plan to invest an additional $100 billion (approximately 146 trillion won) in the Arizona semiconductor plant over the next four years. Photo by EPA Yonhap News
Wei Zhejia, CEO and Chairman of Taiwan's TSMC, a global semiconductor foundry company, expressed confidence in the company's performance on the 17th (local time), stating that semiconductor demand driven by artificial intelligence (AI) remains strong despite concerns over the US-China trade war. He also maintained the annual growth target of 20% for this year.
In a conference call following the first-quarter earnings announcement, he said, "We are well aware of the potential uncertainties and risks due to tariff policies," but added, "So far, there has been no change in customer behavior." He further stated, "We expect to have a clearer view of the market situation in the coming months and will closely monitor any impact on demand."
He maintained the annual growth target for 2025 at the mid-20% range. The original target of doubling AI-related sales also remains unchanged. The capital expenditure (CAPEX) for this year is planned to stay between $38 billion and $42 billion (54 trillion to 59 trillion KRW).
Chairman Wei pointed out that demand for high-performance semiconductors essential for AI development remains strong. According to Bloomberg News, this optimistic statement came amid growing market concerns following the US Trump administration's restrictions on Nvidia semiconductor exports to China and the disappointing earnings announcement by the Dutch company ASML.
TSMC also plans to continue its efforts aligned with former US President Donald Trump's policy to strengthen American manufacturing. Chairman Wei explained, "Once all six factories currently under construction in Phoenix, Arizona, are operational, 30% of the production of cutting-edge semiconductor chips will be made in Arizona." Earlier, TSMC announced at the White House last month plans to invest an additional $100 billion (approximately 146 trillion KRW) in its Arizona semiconductor plant over the next four years.
Furthermore, Chairman Wei stated that TSMC is focusing on its own business. He said, "TSMC is not in discussions with any other company regarding joint ventures, technology licensing, technology transfer, or sharing." This is interpreted as a denial of recent foreign media reports about a joint venture with Intel.
Meanwhile, TSMC recorded first-quarter sales of 839.2 billion Taiwan dollars (approximately 36.6 trillion KRW), up 41.6% year-on-year, and net profit of 361.5 billion Taiwan dollars (approximately 15.8 trillion KRW), up 60.3%. Both figures are record highs for the same quarter and mark the fifth consecutive quarter of increases in sales and net profit. TSMC explained that this profit and sales growth was due to strong sales of 3 to 5 nanometer (one billionth of a meter) chips.
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