TSMC Chairman Rules Out Joint Venture in U.S. Amid Rising Geopolitical Tensions

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TSMC posted a 36% rise in June-quarter profit and a 40% growth in revenue, largely due to the AI boom.

The chairman of Taiwan Semiconductor Manufacturing Co. Ltd. (TSMC) has confirmed that the company will not be establishing a joint venture in the United States but will maintain its current overseas expansion and operational plans.

C.C. Wei, chairman of the world’s largest contract chipmaker and a major supplier to the U.S. corporation Apple and Nvidia, made the comments at the company’s earnings conference when asked about the effect of recent geopolitical concerns.

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TSMC's chairman confirmed no joint venture in the U.S., maintaining current expansion plans.
Despite geopolitical concerns, TSMC reported a 36% rise in profit and 40% revenue growth due to AI demand.
TSMC plans to build a third factory in Arizona, amid uncertainty due to U.S. political dynamics.

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Who’s Who

Taiwan Semiconductor Manufacturing Co. Ltd. (TSMC): Taiwan Semiconductor Manufacturing Co. Ltd. (TSMC) is the world's largest contract chipmaker and a major supplier to Apple and Nvidia. The company reported a 36% rise in June-quarter profit and expects high AI spending to boost 2024 revenue growth. TSMC is building a third factory in Phoenix, Arizona, but has no plans to establish a joint venture in the U.S. despite geopolitical concerns and the upcoming presidential election.

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What Happened When

Thursday, July 18, 2024：: TSMC's Taiwan and New York-listed shares sank sharply after Donald Trump, Republican candidate for the U.S. presidential election in November 2024, commented that Taiwan should pay for its own defense as it took about 100% of America’s chip business.

Thursday, July 18, 2024：: TSMC reported better-than-expected profits and operating margins and lifted its outlook for annual sales growth in earnings released.

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