With the changes in the global geopolitical landscape, especially the potential changes in US policy, the impact on the high-tech industry is increasingly significant. Against this backdrop, Taiwan Semiconductor Manufacturing Company (TSMC), the world's leading semiconductor manufacturer, is experiencing a rush of orders driven by geopolitics. This wave of orders is not only from traditional customers, but also affected by the potential tightening of regulatory measures by the Trump administration, creating unprecedented opportunities and challenges for TSMC.
TSMC welcomes the golden age of AI and high-performance computing
In recent years, the demand for artificial intelligence (AI) and high-performance computing (HPC) applications has continued to climb, driving advances in semiconductor technology. With its advanced manufacturing processes, TSMC has taken a leading position in this field. According to the latest financial data, TSMC's US dollar revenue is expected to hit a record high in the current quarter and 2024. The recent geopolitical emergency has injected a shot in the arm, indicating that even in the traditional off-season - the first quarter of next year, TSMC is expected to achieve sales growth, and even refresh a single quarter performance record.
Since the first half of the year, TSMC has observed an increase in the share of revenue generated by mainland Chinese customers, reaching 16 per cent in the second quarter, a change that has been interpreted as a rush effect caused by the psychology of geopolitical expectations. Although TSMC officials have not explained much about this, it can be speculated that this is a preventive stockpiling strategy taken by enterprises in the face of changes in the international situation. With the news that Trump is about to enter the White House again, and a new round of export control measures being prepared by the US government, American customers have begun to place orders in advance in order to avoid possible risks in the future, further aggravating the growth of TSMC's order volume.
In order to better cope with the rapidly changing market environment and technological innovation, TSMC is also actively adjusting its internal structure. In a recent high-level fine-tuning, the company decided to upgrade the Corporate Strategy Office and brought in three senior executives to form an "Iron Triangle" team - Luo Weiren, formerly senior Vice President of Research and Development; Lin Jinkun, Chief Information Security officer and Senior Vice President; and Rick Cassidy, senior vice president of Corporate Strategy Office. The purpose of this layout is to strengthen the company's capabilities in strategic planning, technology development and security protection, ensuring that it can flexibly respond to the challenges of the future.
Market reaction and outlook
Investors' confidence in this trend was also reflected in the performance of TSMC ADRs on December 13, when the share price rose nearly 5%. Regarding these latest developments, TSMC's public relations department said that the performance outlook and capital expenditure plan for 2025 have not been announced, and the specific financial information is still subject to the corporate briefing in October. However, from the current trend, TSMC is not only expected to hand over a bright report card at the end of this year, but is more likely to usher in a historic "peak season" in the upcoming first quarter.
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