TSMC Profits Soar Higher Than a Dragon's Flight! But Will Trump's Tariffs Burn It All Down?

Fire and Blood... and Profits!

Khaleesi here reporting live from… well not Westeros. It seems my dragons are a bit outdated when it comes to the latest technology. But fear not because I’ve found something just as fiery: TSMC! This Taiwanese chipmaker has announced that its profits are soaring higher than Drogon on a Dothraki feast day! Their Q1 results have not only met but exceeded expectations. Revenue reached a staggering $839.25 billion New Taiwan dollars surpassing estimates. Net income jumped a whopping 60.3% compared to last year reaching NT$361.56 billion. It seems that demand for AI chips is as insatiable as a Lannister for gold.

The AI Throne: TSMC's Claim

TSMC's success you see is no accident. Like my claim to the Iron Throne it's built on a strong foundation. Their high performance computing division which includes AI and 5G applications is the secret weapon. It now accounts for 59% of their total revenue a 7% increase since the last quarter. Apparently smaller is better as their advanced technologies those minuscule 7 nanometer and less chips make up 73% of their wafer revenue. Who knew that something so small could wield so much power? It reminds me of Tyrion Lannister – small in stature but a giant in intellect.

Winter is Coming... Or is it Tariffs?

Of course no reign is without its challenges. As I faced the White Walkers TSMC faces the looming threat of… Donald Trump! It seems this man with his penchant for walls and tariffs could pose a significant problem. His trade policies against Taiwan including a potential 32% tariff could disrupt the delicate balance of the semiconductor market. And let's not forget the stricter export controls on TSMC's clients Nvidia and AMD. It's enough to make a Mother of Dragons breathe fire… at the White House! "We understand there are uncertainties and risks from the potential impact of tariff policies," they say. Really! It reminds me of the unsullied always so calm under pressure.

Breaking the Wheel? Diversifying the Kingdom

But fear not loyal subjects! TSMC is not one to sit idly by and wait for the storm to break. Much like I tried to break the wheel of Westeros TSMC is attempting to diversify its supply chains. They're investing billions in overseas facilities including a substantial $100 billion in the U.S. on top of the $65 billion already committed. It seems even a dragon needs to spread its wings and build new nests. AMD will soon manufacture processor chips at one of the new Arizona based TSMC facilities marking the first time that its chips will be manufactured in the U.S. Nvidia announced that it has already started production of its Blackwell chips at TSMC's Arizona plants. It plans to produce up to half a trillion dollars of AI infrastructure in the U.S. over the next four years through partners including TSMC. The world will change but TSMC plans to make it their own.

False Allies and Joint Ventures: A Game of Deceit

Amidst the chaos rumors abound of a potential alliance with Intel. But fear not for TSMC has denied any discussions about a joint venture. "TSMC is not engaged in any discussion with other companies regarding any joint venture technology licensing or technology," they declared. It seems the game of deceit is still alive and well in the world of semiconductors. Much like Littlefinger whispering in the shadows misinformation can be a powerful weapon. We shall see how this plays out but I have a feeling that the truth will eventually come to light as it always does.

A Dragon's Resolve: The Future of TSMC

Despite the challenges TSMC remains optimistic maintaining its forecast of close to mid 20% revenue growth in 2025. Shares have lost over 20% so far this year. The company's CEO C.C. Wei said "Moving into the second quarter of 2025 we expect our business to be supported by strong growth of our 3 nanometer and 5 nanometer technologies"! It seems that even with dragons at my side sometimes the market behaves as unpredictably as a Dothraki horde. But one thing is certain: TSMC's future like my own is far from written. We shall see what the future holds but I for one will be watching closely. After all "A dragon is not a slave."