Lates News

TSMC's Chief Financial Officer, Huang Renzhao, stated that the best way for a company with large overseas income to manage exchange rate market fluctuations is to keep the strategy simple. He pointed out that with the current exchange rate of the US dollar against the New Taiwan Dollar changing by 1%, TSMC's gross margin and operating profit margin will be affected by 30 basis points. However, the company will prioritize using a "simple" foreign exchange risk management strategy, which includes selling US dollars in the spot and forward markets, and injecting US dollar cash into TSMC's overseas subsidiaries. The US dollar exposure had an impact on TSMC's profits last year when the New Taiwan Dollar saw its largest single-day increase in nearly 40 years in early May. Huang Renzhao stated that with the current higher profit margin situation, the impact of exchange rate fluctuations will be mitigated.