TSMC (2330 TT) guides Q1 Revenue between USD 34.6-35.8bln (exp. 33.2bln), guides Gross Margin between 63-65% (exp. 59.6%), sees Operating Margin between 54-56% (exp. 50%), 2026 CapEx to come in between 52-56bln (prev. 40.9bln in 2025)
Importance
Level 1
- Capex is to be higher in the next three years.
- Cost of tools are becoming more expensive.
- Long term gross margins of 56% and higher is achievable.
- In 2026 there are uncertainties from tariffs.
- Will be prudent in business planning.
- Robust AI-related demand.
- Increasing AI model adoption.
- 2026 sales to grow by close to 30% in USD terms.
- Preparing to increase capacity to support customers.
- Customers are providing strong signals and reaching out directly to request capacity.
- Firms have been showing TSMC that AI is a significant help to their businesses.
- Announces plans to expand its fabrication facilities in Arizona.
- Co. is worried about electricity in Taiwan.
- Co. informed that Silicon from TSMC is a bottleneck with the Co. aiming to deal with the bottle neck first and foremost.
- Reduced their 6 and 8 inch wafer capacity to optimise resources.
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