TSMC Tempers Outlook on Quake Loss as AI Concerns Persist

Published On Feb 10, 2025, 2:05 AM

Taiwan Semiconductor Manufacturing Co. (TSMC) has revised its sales outlook for the first quarter, predicting it will be at the lower end of previous forecasts due to production disruptions caused by recent earthquakes. The company has reported that losses from these earthquakes amount to approximately NT$5.3 billion (about $161 million) after accounting for insurance. Despite this, TSMC maintains a positive outlook for its overall gross profit margin and revenue for the year, supported by expected demand in the AI sector. Recently, key technology firms, including Microsoft and Amazon, have announced significant investments in AI, which could benefit TSMC as a major supplier. However, TSMC also faces potential challenges from U.S. tariff threats on semiconductor imports.