Core Viewpoint - TSMC is under pressure to retain some advanced chip technology in Taiwan, which could have significant implications for Intel and the broader semiconductor industry [1] Group 1: TSMC's Position - TSMC is facing increasing demands from the Taiwanese government to keep critical chip manufacturing technologies within the country [1] - The company is balancing these pressures with its global expansion plans, particularly in the United States [1] Group 2: Implications for Intel - Intel may face challenges in competing with TSMC if the latter retains key technologies in Taiwan, potentially affecting Intel's market position [1] - The situation could lead to a shift in the competitive landscape of the semiconductor industry, impacting supply chains and technology access [1] Group 3: Industry Impact - The semiconductor industry may experience increased geopolitical tensions as countries vie for technological supremacy [1] - Companies may need to reassess their strategies in light of TSMC's decisions regarding technology localization [1]

On Monday, the world's largest contract chipmaker, Taiwan Semiconductor Manufacturing Company Limited (TSM) , has announced that it is making an investment of more than $100 billion in the United States to build at least five more chip facilities in the country. TSMC said that this expansion includes three chip fabrication plants, two advanced packaging facilities and a research and development center.President Trump announced the deal at a White House event. “Semiconductors are the backbone of the 21st cen ...

Semiconductor giant Taiwan Semiconductor Manufacturing Co. (TSMC) announced a $100 billion investment in the U.S. on Monday. TSMC, a Taiwan-based chipmaker that builds advanced semiconductors which are used to power smartphones and artificial intelligence (AI) models, announced the investment following meetings with President Donald Trump.The investment is expected to focus on advanced semiconductor manufacturing facilities over the next four years. TSMC has previously invested in a chip factory in Arizona ...

Group 1 - Taiwan Semiconductor Manufacturing Company (TSMC) shares are down 4.5% to $172.37, amid anticipation of a $100 billion chip manufacturing announcement from President Donald Trump [1] - TSMC is on track for its ninth loss in ten sessions, potentially closing at its lowest level since early October, following a record high of $226.40 on January 24 [2] - The company's stock shows a Schaeffer's Volatility Index (SVI) of 43%, indicating options are currently an affordable strategy, with a low Schaeffer's Volatility Scorecard (SVS) of 25 out of 100, suggesting it is a prime candidate for premium selling [3]

Core Viewpoint - TSMC plans to announce a $100 billion investment in the U.S. to build additional chip factories, which is part of a broader strategy to enhance semiconductor production domestically [1][2]. Investment Plans - TSMC's new $100 billion investment is in addition to a previously announced increase of $25 billion, bringing the total planned U.S. investment to $65 billion, which includes the construction of a third factory in Arizona by 2030 [2]. - The company is expected to discuss its vision for innovation and growth in the semiconductor industry during the meeting with President Trump [3]. Government Support - The U.S. Commerce Department provided a $6.6 billion subsidy for TSMC's semiconductor production in Phoenix, finalized under the Biden administration [3][5]. - The CHIPS and Science Act, signed by Biden in 2022, allocated $52.7 billion in subsidies to boost domestic semiconductor production and reduce reliance on Asian imports [3][4]. Technological Advancements - TSMC is set to produce advanced 2-nanometer technology at its second Arizona factory, expected to begin production in 2028, and is already manufacturing four-nanometer chips for U.S. customers [7]. - The company has also received up to $5 billion in low-cost government loans as part of its investment strategy [7].

About this content About Josh Lamb After graduating from the University of Kent in the summer of 2022 with a degree in History, Josh joined Proactive later that year as a journalist in the UK editorial team. Josh has reported on a range of areas whilst at Proactive, including energy companies during a time of global crisis, aviation and airlines as the sector recovers from the pandemic, as well as covering economic, social and governance issues. Read more About the publisher Proactive financial news and ...

The Marvell® 2nm platform will enable hyperscalers to dramatically boost the performance and efficiency of their infrastructure to meet the performance and efficiency demands of the AI era. Built on TSMC's 2nm process, the silicon is a critical part of the Marvell platform for developing next-generation custom AI accelerators, CPUs, and networking. The silicon IP includes high-speed 3D I/O for vertically stacking die inside chiplets. SANTA CLARA, Calif., March 3, 2025 /PRNewswire/ -- Marvell Technology, In ...

Core Points - Intel has delayed the start of production at its new chip-making plants in Ohio to 2030, five years later than initially planned, as part of a $28 billion project [1][2] - The company is adopting a cautious approach to align production with market demand, as stated by Intel Foundry Manufacturing general manager Naga Chandrasekaran [2] - Intel reported a net loss of $18.8 billion for the full year 2024, indicating ongoing struggles in the competitive semiconductor market [3][4] Company Challenges - Intel's market position has been challenged by Asian competitors like TSMC and Samsung, which dominate the semiconductor industry [4] - The emergence of Nvidia as a leading AI chip provider has further complicated Intel's efforts to regain its competitive edge [4] - The departure of CEO Pat Gelsinger followed a loss of confidence from the board regarding the company's turnaround plans [4][5] Strategic Adjustments - The company has announced job cuts exceeding 15,000 as part of a cost reduction strategy and has paused or delayed construction on several facilities [5] - Intel has also postponed plans for two mega chip-making factories in Germany and Poland due to lower-than-expected demand [6] - The company is maintaining flexibility in construction pace, allowing for acceleration if customer demand increases [3]

Group 1: Company Performance - TSMC's stock closed at $180.53, reflecting a -0.31% change, underperforming the S&P 500 which gained 1.59% [1] - Over the past month, TSMC shares have decreased by 13%, compared to a 3.43% loss in the Computer and Technology sector and a 2.42% loss in the S&P 500 [1] - Analysts expect TSMC to report earnings of $2.03 per share, representing a year-over-year growth of 47.1%, with revenue anticipated at $25.25 billion, indicating a 33.77% increase from the same quarter last year [2] Group 2: Full Year Estimates - For the full year, analysts project earnings of $9.20 per share and revenue of $113.63 billion, marking increases of +30.68% and +26.14% respectively from the previous year [3] Group 3: Analyst Estimates and Ratings - Recent changes in analyst estimates for TSMC indicate a positive outlook on the company's business operations and profit generation capabilities [4] - The Zacks Rank system, which incorporates estimate changes, currently rates TSMC as 2 (Buy), with a historical average annual return of +25% for stocks rated 1 since 1988 [6] Group 4: Valuation Metrics - TSMC has a Forward P/E ratio of 19.69, aligning with the industry average, and a PEG ratio of 0.6, which is also consistent with the industry average [7] Group 5: Industry Context - The Semiconductor - Circuit Foundry industry, part of the Computer and Technology sector, holds a Zacks Industry Rank of 3, placing it in the top 2% of over 250 industries [8]

Financial Position and Performance - The parent company only financial statements present a fair view of the financial position as of December 31, 2024, and 2023, in accordance with relevant regulations [3]. - Total net revenue for 2024 reached $2,880,383,350, a 33.7% increase from $2,153,285,095 in 2023 [26]. - Gross profit margin improved to 55% in 2024, up from 53% in 2023, with gross profit amounting to $1,574,242,434 [26]. - Net income for 2024 was $1,173,267,703, a 39.9% increase from $838,497,664 in 2023, resulting in a net income margin of 41% [26]. - Total current assets rose to $1,609,565,096, accounting for 27% of total assets, compared to 24% in 2023 [25]. - Total noncurrent assets increased to $4,427,684,204, representing 73% of total assets, down from 76% in 2023 [25]. - Total liabilities amounted to $1,748,704,133, maintaining a consistent 29% of total assets [25]. - Total equity attributable to shareholders of the parent reached $4,288,545,167, representing 71% of total assets, unchanged from 2023 [25]. - Basic and diluted earnings per share for 2024 were both $45.25, compared to $32.34 in 2023 [28]. - Other comprehensive income for 2024 was $72,568,913, compared to a loss of $7,988,122 in 2023 [28]. - As of December 31, 2023, the total comprehensive income for Taiwan Semiconductor Manufacturing Company Limited was $838,012,766, reflecting a significant increase from the previous year [30]. Cash Flow and Investments - Cash generated from operations increased to NT$2,016,898,156 in 2024, up 47.9% from NT$1,364,486,858 in 2023 [33]. - Net cash generated by operating activities rose to NT$1,835,575,369, compared to NT$1,207,082,903 in the previous year, reflecting a 52% increase [34]. - Net cash used in investing activities was NT$618,548,957 in 2024, slightly higher than NT$588,128,653 in 2023 [34]. - Net cash used in financing activities increased to NT$900,668,625 in 2024 from NT$529,126,435 in 2023, indicating a significant rise in financing outflows [34]. - Cash dividends paid in 2024 amounted to NT$363,055,226, compared to NT$291,721,852 in 2023, marking a 24.5% increase [34]. - The ending cash and cash equivalents for 2024 were NT$1,035,061,499, up from NT$718,703,712 at the end of 2023, representing a 44% increase [34]. - The company reported financial assets at amortized cost of $14,208,158 in 2024, a decrease from $18,371,705 in 2023, reflecting a decline of approximately 23% [149]. - The company increased its investment in TSMC Global by NT$261,677,200 thousand in 2024 [171]. - The company increased its investment in TSMC Arizona by NT$236,121,500 thousand in 2024, compared to NT$292,649,510 thousand in 2023 [171]. - The company increased its investment in JASM by NT$15,754,106 thousand in 2024, raising its ownership from 71% to 73% [172]. - The company's shareholding in ESMC decreased from 100% to 70% after selling 10% of its shares to Robert Bosch GmbH, Infineon Technologies AG, and NXP Semiconductors N.V. [174]. Audit and Compliance - Key audit matter identified includes the commencement of depreciation related to property, plant, and equipment classified as equipment under installation and construction in progress [6]. - Management is responsible for assessing the company's ability to continue as a going concern and must disclose relevant matters [11]. - The audit procedures included evaluating the reasonableness of management's judgments regarding the commencement of depreciation [14]. - The auditors communicated significant audit findings and deficiencies in internal control to those charged with governance [15]. - The overall presentation and content of the financial statements were evaluated to ensure fair representation of underlying transactions [18]. - The independent auditors' report was issued on February 12, 2025, by Deloitte & Touche [20]. - The financial statements are prepared in accordance with accounting principles generally accepted in the Republic of China [21]. - The engagement partners for the audit were Shih Tsung Wu and Shang Chih Lin [19]. Assets and Liabilities - The total assets of the company reached $3,917,252,023 by December 31, 2024, showing a robust growth trajectory [31]. - The company retired 1,402 shares, impacting the treasury stock by $14,018 [31]. - The balance of notes and accounts receivable at amortized cost increased to $34,036,332 in 2024 from $28,676,101 in 2023, with a loss allowance of $451,913 [160]. - Total inventories increased to $270,716,472 in 2024 from $238,259,195 in 2023, with net inventory losses recorded as $(79,431) in 2024 compared to $3,526,480 in 2023 [165][166]. - The balance of domestic unsecured bonds payable increased from $439,869,855 in 2023 to $453,839,281 in 2024, representing a growth of approximately 3.2% [192]. - The current portion of bonds payable rose significantly from $6,997,710 in 2023 to $24,397,381 in 2024, indicating a substantial increase of about 249% [192]. Employee Benefits and Expenses - The company recognized pension expenses of NT$4,537,289 thousand for the year ended December 31, 2024 [200]. - The company recognized pension expenses of NT$4,154,345 thousand for the year ended December 31, 2023 [200]. - The company’s defined benefit costs are determined using the Projected Unit Credit Method, impacting employee benefits expense in the period they occur [116]. Financial Instruments and Derivatives - Financial assets are classified into three categories: financial assets at FVTPL, investments in equity instruments at FVTOCI, and financial assets at amortized cost [57]. - Financial assets measured at amortized cost are recognized at carrying amount determined by the effective interest method less any impairment loss [59]. - A loss allowance for expected credit loss is recognized for financial assets at amortized cost, with accounts receivable measured at lifetime expected credit losses [60]. - The Company derecognizes a financial asset only when the contractual rights to cash flows expire or when it transfers the asset and substantially all risks and rewards of ownership [61]. - Financial liabilities are measured at amortized cost or at FVTPL, with gains or losses recognized in profit or loss for those at fair value [66]. - Derivative financial instruments are initially recognized at fair value and subsequently remeasured, with gains or losses recognized in profit or loss unless designated as hedging instruments [71]. Intangible Assets and Goodwill - Goodwill arising from business acquisitions is carried at cost less accumulated impairment losses, tested annually for impairment [102]. - Other intangible assets are carried at cost less accumulated amortization, with amortization recognized over their estimated useful lives [104]. - The Company recognizes impairment losses for goodwill directly in profit or loss, which are not reversible in subsequent periods [105]. - The total carrying amount of intangible assets increased from $87,900,537 in 2023 to $94,615,495 in 2024, reflecting a growth of approximately 7.8% [190]. - The accumulated amortization and impairment for intangible assets rose from $70,216,473 in 2023 to $74,163,413 in 2024, indicating an increase of about 5.6% [190]. - The carrying amount of goodwill remained constant at $1,567,756 from 2023 to 2024, indicating no change in this asset category [190]. Green Bonds and Financing - The company issued a total of $12,200,000 in green bonds with a coupon rate of 1.54% for the tranche A from March 2023 to March 2028 [198]. - The total issuance amount for tranche B of the green bonds in March 2023 is $2,300,000 with a coupon rate of 1.60% [198]. - The company plans to issue $13,100,000 in green bonds with a coupon rate of 1.60% for tranche A from May 2023 to May 2028 [198]. - A total of $11,400,000 in green bonds will be issued for tranche A from June 2023 to June 2028 with a coupon rate of 1.60% [198]. - The company has a total issuance of $7,300,000 in green bonds for tranche A from August 2023 to August 2028 with a coupon rate of 1.60% [198]. - The company plans to issue $4,300,000 in bonds with a coupon rate of 1.62% for tranche A from October 2023 to October 2028 [198].