In the past few days, TSMC declared an increase in its profit by 60% without much influence from tariffs. This news indicates that TSMC's customers disregarded tariffs in their business calculus, thus powerfully propelling TSMC ahead.
Chairman Dr. Mark Lu said at a press conference that despite the imposition of tariff structures in global trade, customers still demand the product. He said the customers were focusing on issues such as quality, technology, and timely delivery. This means that when deciding what kind of semiconductor to ask for, their customers place priority on these characteristics rather than prices.
TSMC has withstood various industries. Its demand lies highly in categories like smartphones, computers, and automobiles, especially now with the rise of electric vehicles (EV) and artificial intelligence (AI). These industries are changing rapidly, thus increasing the requirement for semiconductors.
The company has expressed its full commitment to increasing production capability through concrete steps. It is expanding new factories and purchases of new equipment, with further enhancement of dynamic capabilities through implementation. This translates into more production and fewer quality rejects.
In tariff contexts, TSMC resolved that any hindrance or duty is a minor matter for its business. States Mark Lu, they are enlarging their presence in different countries and regions, like the US and Europe. It is part of their long-term strategy to invest further in these economies.
Yet, the company acknowledges that ongoing changes in the global supply chain may to some extent affect their operations. They, however, remain committed to realizing timely and quality semiconductor deliveries for their customers.
For a few years, TSMC has had its rough moments. The global semiconductor shortage and the corona pandemic have made challenges for many companies, while TSMC has faced those challenges due to its peculiar approach and policies. They present themselves as replacement industries with superior strategies, a newfound opportunity for profit maximization.
All in all, the successes of TSMC are a product of their high product standard and technological advancement, as much as they are of the efficiencies in customer relationship management. Therefore, TSMC, with proper aims in place, will continue to flourish even in future times and subsequently establish in new markets, thus allowing maintaining profit growth.
Thus, you see that TSMC not only improved its profits via business strategy and production capacity but additionally reinforced its reputation as a player on the worldwide level. The quality and service of their product continue to earn resounding praises from their clients. The saga of this success could also serve as inspiration for other companies.