TAIPEI (TVBS News) — Taiwan Semiconductor Manufacturing Company (TSMC, 台積電), the world's largest contract chipmaker, saw its Chairman C.C. Wei (魏哲家) field tough questions about currency pressures at Tuesday's (June 3) annual shareholders' meeting. Wei, who celebrated his first anniversary as chairman, engaged candidly with investors about how the strengthening New Taiwan dollar is squeezing profit margins. He reassured the packed auditorium that TSMC remains focused on technological dominance in the semiconductor industry regardless of monetary headwinds.
Wei provided shareholders with specific figures on currency impacts, revealing that every 1% appreciation of the New Taiwan dollar against the U.S. dollar translates to a 0.4% reduction in profit margins. The semiconductor giant has already absorbed a significant hit following the local currency's 8% surge in early May, which has eroded profit margins by more than 3% despite recent stabilization. "The only path forward is continued hard work," Wei explained, outlining TSMC's dual strategy of maintaining technological superiority while ensuring the company receives fair market value for its advanced semiconductor products.
Wei addressed potential ripple effects from former U.S. President Trump's tariff policies, explaining that while TSMC's export-oriented business model provides some insulation, the broader market could face price increases and demand contraction. The chairman countered this concern by highlighting robust demand for artificial intelligence chips and TSMC's aggressive capacity expansion to meet this growing market. Despite currency challenges, Wei projected record earnings for 2025, reaffirming the company's commitment to maximizing shareholder returns in an increasingly complex global trade environment.
TSMC pledged to maintain vigilance while navigating these economic headwinds, with Wei emphasizing the company's unwavering focus on innovation and strategic planning. The semiconductor giant's leadership team outlined initiatives to protect margins through operational efficiencies while continuing aggressive research investments. TSMC technological leadership remains its strongest competitive advantage, Wei concluded as the meeting adjourned, receiving a round of applause from satisfied shareholders. ◼