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Geopolitics weigh on TSMC

Updated Jul 18, 2024, 6:17pm EDT
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Taiwan Semiconductor Manufacturing Co. expects chip sales this year to be even higher than previously forecast, after posting a better-than-expected quarterly profit Thursday. The raised outlook from the​​ world’s largest chipmaker suggests sustained confidence in the global AI boom, even as TSMC’s stock took a hit after Donald Trump said Taiwan should pay the US for its defense.

The impact from Trump’s comments showed investors are watching for more than just technical advances and earnings, the Financial Times wrote: “Rising political risks for TSMC and other companies operating in Taiwan cannot be ignored … Politics will play as big a role as chip growth in determining the path for Asia’s semiconductor stocks in the coming quarters.”

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