TSMC's AI Chip Empire Strikes Back! Will Trump's Tariffs Ogre-throw the Party?!

Like an Onion It Has Layers of Profit!

Alright alright settle down! Shrek here reporting live from my swamp... well kinda. This TSMC or Taiwan Semiconductor Manufacturing Company if you're fancy they're rakin' in the mud I mean money! They beat expectations for the first quarter all thanks to those shiny new AI chips everyone's been yappin' about. Revenue's up income's up... sounds like someone's been eating their Wheaties! Net income jumped 60.3% from last year reaching NT$361.56 billion while revenue rose 41.6% to NT$839.25 billion. That's a lot of zeroes even for Donkey!

Advanced Tech? More Like Farquaad Tech!

Apparently the fancy stuff what they call 'advanced technologies' – 7 nanometer and less – makes up 73% of their wafer revenue. Now I don't know what a nanometer is but it sounds smaller than my pinky toe and that's sayin' somethin'! But all that smart stuff is really just like Farquaad trying to make himself seem big and important.

AI Boom? More Like AI Kaboom!

This whole AI craze is like a dragon breathin' fire into TSMC's business. They're makin' the brains for Nvidia and others and business is booming! But hold your horses 'cause there's always a catch isn't there? Just like when I thought I could live in peace and quiet then BOOM! Talking donkey.

Trump's Trade Swamp: Get Out of My Swamp!

Here's where the plot ogre thickens! Donald Trump that fella he's throwin' tariffs around like confetti at a wedding. Taiwan's got a 10% tariff already and it could jump to 32%! That's enough to make even me sweat and I live in a swamp! He's also puttin' the squeeze on TSMC's clients like Nvidia and AMD with stricter export controls. It's like he's trying to build a wall around my swamp I mean around the semiconductor industry!

Diversify or Die versify!

TSMC ain't no dummy. They're spreadin' their bets building new factories overseas. They're throwin' a whopping $100 billion extra into the US on top of the $65 billion already planned. That's more money than I've seen in a lifetime of collecting swamp slugs! AMD's gonna make chips at one of these Arizona plants. And Nvidia has already started the production of its Blackwell chips at TSMC's Arizona plants. They're plannin' to produce half a trillion dollars of AI infrastructure in the U.S. over the next four years through partners including TSMC. Good for them but keep in mind 'better out than in,' as they say.

Shares Slumpin' Like a Donkey in Quick Sand

But hold your ogres! All this ain't a perfect fairytale. TSMC's shares are down nearly 1% on the Taiwan stock exchange. They've lost over 20% so far this year. It's enough to make you wanna cry into your onion soup! Gotta keep your head up like Fiona said 'What are you doing in my swamp?' Just gotta keep fighting for your territory.