The results of the US tax verdict have continued to appear, and investors are worried about affecting the market dynamics. However, Taiwan Electric held a legal meeting on the 17th and announced the second quarter profit of NT$398.273 billion, a new...
The results of the US tax verdict have continued to appear, and investors are worried about affecting the market dynamics. However, Taiwan Electric held a legal meeting on the 17th and announced the second quarter profit of NT$398.273 billion, a new record. Chairman Wei Zhejia even shouted that the US dollar price growth this year will be 30%. Good news continues, and there is no doubt that the market will be given a boost to the heart.
Taiwan announced on the 17th that the second quarter US dollar closed more than US$30 billion, reaching US$30.07 billion, which was better than expected; the gross profit margin of the single quarter was 58.6%, in line with expectations, and the parent company's net profit of NT$39.273 billion, setting a record high, with a pure profit of NT$15.36 per share.
At the same time, Wei Zhejia also explained the layout of the domestic and foreign countries, the issue of the lifting of the ban on NVIDIAH20, and even humanoid robots have become one of the discussions and questions at the legal conference. The Taiwan Electricity Association, the Central Committee of the Communist Party of China, has watched five major points at one time.
Question: Will the continuous announcement of the relevant taxes of various countries affect the market's ability to place orders with customers?Wei Zhejia said that there are uncertainties and risks in tax policies, especially for consumers and price-sensitive end markets. No changes in customer behavior have been seen yet, as the market has strong demand for 3nm and 5nm, coupled with the growth of high-efficiency computing platforms, Taiwan Electric's US dollar investment projected growth in 2025 is about 30%.
Wei Zhejia said that in the absence of clear attitudes, he will pay attention to potential tax-related effects and carefully plan his business in the second half of 2025 and 2026. NTU will continue to invest in the future trends and focus on the fundamentals of business, namely technology-leading, excellent manufacturing and customer trust.
Huang Renzhao pointed out that NT$38 billion to US$42 billion this year.
Question: What is the impact of the new Taiwan currency on Taiwan so far?Huang Renzhao said that almost all the NT$ are priced in US dollars, and about 75% of the sales cost is priced in New Taiwan dollars. The change in the exchange rate of the new Taiwan Coin on the US dollar will have a significant impact on revenue and gross profit margin.
Huang Renzhao pointed out that for every 1% appreciation of the US dollar in the New Taiwan Coin, the operating income at the New Taiwan Coin price will be reduced by 1%, and the gross profit margin will drop by about 0.4 percentage points. In the second quarter, the New Taiwan Coin appreciated by about 4.4%, affecting the reduction of the New Taiwan Coin's revenue by about 4.4%, and the gross profit margin fell by about 1.8 percentage points. In the third quarter, the New Taiwan Coin appreciated by another 6.6%, which will affect the reduction of the New Taiwan Coin's revenue by 6.6%, and the gross profit margin fell by 2.6 percentage points.
Taiwan's subsidiary TSMC Global increases its 100% stake in TSMC Global. Since the reporting currency of TSMC Global's financial statements is US dollars, it is not affected by the fluctuation of the new Taiwan currency exchange rate, and can achieve a risk avoidance effect.
Question: How to see NVIDIAH20 being allowed to resume exports to China?Wei Zhejia said that this is undoubtedly good news, but NTU is still not sure whether it is ready to increase the revenue growth estimate of AI accelerator.
Taiwan was previously optimistic that the AI accelerator revenue would double this year, and it is expected that the annual synthesis growth rate will reach 44% to 46% in the next five years from 2024.
As for the humanoid robot market, Wei Zhejia said that humanoid robots play the role of industry growth is too early this year and next year, but customers believe that humanoid robot business machines will be 10 times larger than electric vehicles.
Question: Is Taiwan's domestic and foreign layout progressing?Wei Zhejia said that the first wafer factory in Arizona, the United States has produced a 4-nanometer process in the fourth quarter of 2024. The second wafer factory will use 3-nanometer process technology and has completed construction. Due to customer needs, it is committed to accelerating the production progress for several quarters.
Wei Zhejia said that the third crystal factory will use 2nm and A16 process technology. Due to customers' strong demand for artificial intelligence (AI), it will consider accelerating production progress. The fourth wafer factory will use 2nm and A16 process technology, while the fifth and sixth wafer factory will use more advanced technology. The construction and production plans of these wafer factories will be determined by customer needs.
Wei Zhejia said that the expansion plan will make NTD expand into a super-large crystal plant settlement in Asia to support customer needs in areas such as smart phones, AI and HPC applications. About 30% of the advanced process capacity of 2 nanometers and more will come from the Arizona crystal factory, becoming an independent advanced semiconductor manufacturing settlement in the United States.
Wei Zhejia said that the first special process technology wafer in Kumamoto, Japan, has been mass-produced by the end of 2024, and the second factory construction project will be launched later this year, and the situation will be determined by the local foundation facilities.
Taiwan Electric is building a special process technology wafer factory in Delesten, Germany according to the plan, and is progressing well.
Huang Ren Aki said that with the further improvement of the crystal plants in Kumamoto and Arizona, the profit from overseas crystal plants will be more significant. It is expected that in the next five years starting this year, overseas crystalline manufacturers will have a dilution in gross profit margin, with an initial impact of about 2 to 3 percentage points per year and an later expansion of 3 to 4 percentage points.
Wei Zhejia pointed out that Taiwan Power continues to expand its investment in Taiwan, and will build 11 crystalline factories and 4 advanced packaging factories in the next few years. A 2-nano crystal mill factory is being launched in Hsinchu and Kaohsiung Science Park to support customer needs.
Question: What is the overview of Taiwan Electric's advanced process capacity?Wei Zhejia said that the 5-nanometer process can be tight, and the 3-nanometer process can be tighter. Typhoon can support it through 7-nanometer production, reducing the supply and demand gap.
2 nanometers were produced in the second half of this year as scheduled, N2P was produced in the second half of 2026, the A16 process uses super-grade, and the A14 process has been developed well, and the A14 process is scheduled to be produced in 2028, and the super-grade solution is launched in 2029..
Extended reading: Don't be afraid of the impact of exchange rate! Taiwan Power Q2 earned 15.36 yuan per share, gross profit margin was 58.6%, exceeding expectations Wei Zhejia reveals new progress! N2P, A16 take over the baton, A14 develops ahead of schedule 2028 mass production Taiwan Electric accelerates the US layout, and Arizona factories account for 30% Advanced Processing Production Taiwan Power: The United States opens wide H20 exports to China is a good thing. It is to mention the annual US dollar revenue to see strong demand for AI
