TAIWAN: TSMC Results Bode Well for Tech Sector
- TSMC's results were expected to drive a strong start to equities, prior to the weak end on Wall street.
- At yesterdays results, TSMC announced that it expects 2025 sales to grow by mid-30% in USD terms this year.
- TSMC previously saw 2025 sales to grow by around 30% in USD terms
- TSMC is speeding up US capacity expansion as the CEO noted that the AI 'megatrend' continues to strengthen. He described TSMC's capacity at present as 'very tight' whilst expecting capex to fall to $40bn from a previously expected $42bn.
- TSMC finished Thursday up +1.7%, following Wednesday's gains of +2.8%.
- The TAIEX in Taiwan is materially impacted by TSMC's performance and the market will hope that the weak finish in the US is overlooked, giving the tech sector a boost in Asia today.
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