Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR(TSM.US) revenue in April increased by 48%, with global companies stocking up on chips to prepare for tariffs.

Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR (TSM.US) achieved a 48% revenue growth in April, reflecting the urgency for electronic companies to purchase key components before the new tariff policies take effect. As a core chip supplier for Apple Inc. (AAPL.US) and NVIDIA Corporation (NVDA.US), Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR reported monthly sales of 349.6 billion New Taiwan Dollars (equivalent to approximately 11.6 billion U.S. dollars), which is significantly higher than the analysts' average expectation of a 38% revenue growth for the company in the second quarter. The trade war initiated by the Trump administration has resulted in adjustments to global GDP forecasts by economists, impacting the iPhone market demand and the development prospects in various sectors such as computing, data centers, etc., casting a shadow over them. However, Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR, with its irreplaceable position in the supply chain, is seen as a barometer for global tech spending. The company has stated that market demand remains strong, especially for NVIDIA Corporation's high-end chips crucial for artificial intelligence development. Nevertheless, the recent significant appreciation of the New Taiwan Dollar may pose pressure on Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR's future profit margins as most of its business is denominated in U.S. dollars. According to information previously disclosed by Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR, a 1% appreciation in the New Taiwan Dollar would lead to a 0.4 percentage point decline in its operating profit margin. Currently, the Trump administration has decided to revoke some of the restrictions on artificial intelligence chips imposed during the Biden era, as part of a wider effort to modify unpopular global semiconductor trade restrictions. In the short term, this may be a positive signal for Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR. However, the U.S. government is actively preparing to draft new, potentially stricter versions of export control measures, focusing more on direct negotiations with other countries. Reportedly, the Trump administration's plan to revoke the Biden-era rules on artificial intelligence proliferation provides a brief window for broader shipments of AI chips, from which Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR (with 20% of sales coming from AI chip production) will directly benefit. However, due to the impending implementation of new, potentially stricter export control measures by the U.S. government, aimed at preventing China from indirectly acquiring AI chips designed in the U.S., uncertainties remain in the long term.