Taipei: Taiwan Semiconductor Manufacturing Co. (TSMC) achieved its second-highest sales in company history this January, yet faces a significant financial setback with an NT$5.3 billion (US$161 million) loss attributed to recent earthquakes in southern Taiwan. According to Focus Taiwan, the world's leading contract chipmaker announced consolidated sales of NT$293.29 billion for January, marking a 5.4 percent increase from December and a 35.9 percent rise compared to the previous year. The only month with higher sales was October 2024, with NT$314.24 billion in consolidated sales. Analysts credit the surge to robust global demand for high-end chips, driven by the rapid development in artificial intelligence, which countered the typical January sales slump in the tech industry. Despite the impressive revenue figures, TSMC's operational momentum was disrupted by a magnitude 6.4 earthquake on January 21, which affected its southern Taiwan facilities. The earthquake necessitated a temporary halt in operations an d evacuation of staff at the Southern Taiwan Science Park, where TSMC produces chips using its cutting-edge 3 nanometer process technology. TSMC clarified that while its facilities sustained no structural damage, and essential services like water, power, and security systems were swiftly restored, the company still incurred production losses. Preliminary estimates suggest a financial impact of NT$5.3 billion for the first quarter due to these disruptions, potentially placing first-quarter sales at the lower end of its forecasted US$25.0 billion to US$25.8 billion range. Despite these challenges, TSMC remains committed to mitigating the earthquake-induced losses and has reaffirmed its forecast for a first-quarter gross margin of 57-59 percent. The company also maintains its projection for a 24-26 percent sales increase in U.S. dollar terms for 2025. The industry is keenly observing TSMC's upcoming board meeting in the United States, the first to be held there in its 37-year history, especially as U.S. Presi dent Donald Trump has hinted at a potential 100 percent tariff on chips. Analysts are speculating on possible announcements of further U.S. investments by TSMC, which has already pledged US$65 billion for three advanced wafer fabs in Arizona, with the first already operational.
Menu