📈 Taiwan Semiconductor Stock Reflects Tech Strength

Advanced Level | April 30, 2025

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TSMC’s Stock Surge Highlights Taiwan’s Tech Prowess

Taiwan Semiconductor Manufacturing Company (TSMC), the world’s largest contract chipmaker, reported a 42% year-over-year revenue increase in Q1 2025, reaching NT\$839.25 billion (\$25.85 billion). Earnings per share stood at NT\$13.94 (\$0.43), surpassing analysts’ expectations. This strong performance led to a 3.5% rise in TSMC’s U.S.-listed shares. (Investopedia)

Driving Forces Behind the Growth

The surge in demand for artificial intelligence (AI) applications has been a significant factor in TSMC’s growth. As a key supplier to tech giants like Apple and Nvidia, TSMC has benefited from the increasing need for advanced chips. Despite concerns over U.S. tariffs, CEO C.C. Wei noted no significant changes in customer behavior, maintaining a full-year revenue growth target of mid-20% in U.S. dollar terms. (Investopedia)

Global Expansion Amid Geopolitical Tensions

In response to geopolitical pressures, TSMC announced plans to invest \$100 billion in U.S. chip manufacturing facilities, aiming to balance its Taiwan-based production with expanded U.S. capabilities. This move aligns with efforts to mitigate risks associated with global supply chain disruptions. (Investopedia)

Vocabulary

Revenue (noun): Income generated from normal business operations.
Example: TSMC’s revenue increased by 42% in Q1 2025.
Earnings per share (EPS) (noun): A company’s profit divided by the outstanding shares of its common stock.
Example: TSMC reported an EPS of NT\$13.94 in Q1 2025.
Tariff (noun): A tax imposed by a government on imports or exports.
Example: Concerns over U.S. tariffs have impacted global chip manufacturers.
Geopolitical (adjective): Relating to politics, especially international relations, as influenced by geographical factors.
Example: TSMC’s expansion into the U.S. is influenced by geopolitical considerations.
Supply chain (noun): The sequence of processes involved in the production and distribution of a commodity.
Example: TSMC aims to strengthen its supply chain resilience through global expansion.
Semiconductor (noun): A material that conducts electricity under certain conditions, used in electronic devices.
Example: TSMC is a leading producer of semiconductors for various tech companies.
Contract chipmaker (noun): A company that manufactures chips designed by other companies.
Example: TSMC operates as a contract chipmaker for firms like Apple and Nvidia.
Artificial Intelligence (AI) (noun): The simulation of human intelligence processes by machines.
Example: The rise of AI applications has increased the demand for advanced chips.
Investment (noun): The action or process of investing money for profit.
Example: TSMC’s \$100 billion investment in U.S. facilities aims to expand its global presence.
Manufacturing (noun): The process of producing goods using labor, machines, tools, and chemical or biological processing.
Example: TSMC’s manufacturing capabilities are central to its success in the semiconductor industry.

Discussion Questions (About the Article)

What factors contributed to TSMC’s strong financial performance in Q1 2025?
How does the demand for AI applications influence the semiconductor industry?
What are the potential risks and benefits of TSMC’s investment in U.S. manufacturing facilities?
How do geopolitical tensions impact global supply chains in the tech industry?
What did CEO C.C. Wei say about customer behavior despite U.S. tariff concerns?

Discussion Questions (About the Topic)

How important is the semiconductor industry in today’s global economy?
What are the biggest challenges facing tech companies with international supply chains?
Should governments subsidize semiconductor manufacturing? Why or why not?
How does AI development influence the global competition between nations?
What role should Taiwan play in the future of global tech innovation?

Related Idiom

“The ball is in your court”
Meaning: It is up to you to make the next decision or take action.
Example: With TSMC’s expansion plans announced, the ball is in the U.S. government’s court to support the semiconductor industry.

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This article was inspired by Bloomberg coverage published on April 30, 2025.