Taiwan Semiconductor's revenue surged 48% in April as global companies scramble to purchase chips in preparation for tariffs

According to Zhitong Finance APP, Taiwan Semiconductor (TSM.US) achieved a 48% revenue growth in April, reflecting the urgent situation where electronic companies rushed to procure key components before the new tariff policy took effect. As a core chip supplier for Apple (AAPL.US) and Nvidia (NVDA.US), Taiwan Semiconductor reported monthly sales of NT$ 349.6 billion (approximately USD 11.6 billion), which is impressive compared to analysts' average expectation of a 38% revenue growth for the company in the second quarter.

The trade war initiated by the Trump administration has led economists to adjust their global GDP forecasts, negatively impacting the demand for iPhones and the development prospects of various fields such as computing and data center construction, casting a shadow over them. However, Taiwan Semiconductor, with its irreplaceable key position in the supply chain, can be seen as a "barometer" of global technology spending. The company has clearly stated that market demand remains strong, especially for Nvidia's high-end chips that are crucial for the development of artificial intelligence.

However, the recent significant appreciation of the New Taiwan Dollar may put some pressure on Taiwan Semiconductor's future profit margins, as the vast majority of its business is priced in US dollars. According to previous information disclosed by Taiwan Semiconductor, every 1% appreciation of the New Taiwan Dollar would lead to a 0.4 percentage point decline in its operating profit margin.

Currently, the Trump administration has decided to revoke some of the restrictions on artificial intelligence chips imposed during the Biden era, which is part of a broader effort to modify unpopular global semiconductor trade restrictions. In the short term, this may be a positive signal for Taiwan Semiconductor. Nevertheless, the US government is still actively preparing to draft a new version of the rules, which may focus more on direct negotiations with various countries.

Reports indicate that the Trump administration has proposed plans to revoke the Biden-era rules on the diffusion of artificial intelligence, providing a brief window for broader shipments of artificial intelligence chips, from which Taiwan Semiconductor (20% of its sales come from AI chip production) will directly benefit.

However, due to the upcoming implementation of new, potentially stricter export control measures by the US government, aimed at preventing China from indirectly acquiring US-designed artificial intelligence chips, uncertainty still exists in the long term