TSMC Q1 Profit Exceeds 50% [Read It And Eat 14-04-2025]

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Major Headlines

• TSMC Q1 profit set to soar 54% amidst trade war

• Taiwan Semiconductor Manufacturing Co (2330.TW) is expected to post a first-quarter net profit of T$347.8 billion ($10.74 billion), a 54% jump from a year earlier, driven by surging demand for AI chips used in products by Apple (AAPL.O) and Nvidia (NVDA.O). The forecast, based on an LSEG Smart-Estimate from 17 analysts, underscores TSMC’s dominance in the advanced chip sector—but clouds are gathering.

  Despite the solid financials, the world’s top contract chipmaker faces a murkier outlook amid U.S. President Donald Trump’s escalating tariff policies and vocal criticism of Taiwan’s central role in global chip manufacturing.

  TSMC recently committed to a $100 billion U.S. investment alongside Trump at the White House, adding to the $65 billion already pledged for three plants in Arizona. While the company continues to ramp up overseas capacity, it has emphasized that most of its chip production will remain in Taiwan. Reuters

• Trump plots new tariffs on electronics exempted last week

• U.S. Commerce Secretary Howard Lutnick said Sunday that smartphones, computers, and other electronics recently excluded from tariffs would soon face separate levies—alongside new duties on semiconductors and pharmaceuticals.

  Speaking on ABC’s This Week, Lutnick noted that the new “focus-type” tariffs would land in one to two months, marking another twist in President Trump’s evolving trade strategy.

  The administration granted temporary relief from its steep reciprocal tariffs late Friday, sparing tech giants like Apple (AAPL.O) and Dell (DELL.N). But Lutnick’s remarks suggest the reprieve will be short-lived.

  In the wake of Trump’s so-called “Liberation Day” tariffs, markets have whipsawed, with the S&P 500 (.SPX) down more than 10% since January 20. Reuters

  
  

• Alphabet, Nvidia back OpenAI co-founder Sutskever’s new AI venture

• Alphabet (GOOGL.O) and Nvidia (NVDA.O) are among investors backing Safe Superintelligence (SSI), a startup co-founded by former OpenAI chief scientist Ilya Sutskever, according to a source familiar with the deal.

  SSI has quickly become one of the most valuable AI startups since its launch, reportedly reaching a valuation of $32 billion in a recent round led by Greenoaks.

  The investment highlights renewed interest from major tech players in next-generation AI models that demand massive computing power. Alphabet’s cloud unit also signed a deal to supply SSI with TPUs—its proprietary AI chips.

  Sutskever’s reputation for predicting the next big shift in AI development has made SSI a startup to watch.  Reuters

• Chinese manufacturers cutting out billion-dollar middlemen corporations for a more DTC approach

• As with the high US tariffs, orders for the products have been stopped or slowed by the US retailers. The Chinese manufacturers are now stuck with warehouses full of unmovable merchandise which they already spent time and money in manufacturing. In desperation to keep from going out of business, they are offering up their supply directly to consumers.

  In response to Trump’s tariff hikes, Chinese manufacturers are going viral on TikTok for exposing just how little it costs to make luxury goods — from Birkin bags to Lululemon tights. They’re not just showing the production process; they’re advising viewers on how to bypass markups and minimize tariffs by ordering directly from factories. One account claimed a US$38,000 Hermès Birkin actually costs around US$1,000 to produce. Another said the same factories in Yiwu that make Lululemon’s US$100 tights offer near-identical versions for about US$5-6 a pair due to coming from the same production line. 

  Another video compared a bulk bag of 20 Tide Pods-style laundry capsules — priced at US$1 in China — to the US retail price of roughly US$13.

  Some of the videos are coming from sourcing agents or freight forwarders. Others appear to be filmed inside original equipment manufacturing (OEM) factories — facilities that also produce for Western brands under private label agreements. These posts often claim the only difference between what’s sold directly and what ends up on shelves is the branding.

Minor Headlines

• Trump’s ongoing 25% auto tariffs expected to cut sales by millions, cost $100 billion  CNBC

• UK takes control of British Steel under emergency powers BBC

• How Japan built a 3D-printed train station in six hours New York Times

• Jack Dorsey and Elon Musk would like to ‘delete all IP law’  Techcrunch

• Access to future AI models in OpenAI’s API may require a verified ID OpenAI

• OpenAI co-founder Ilya Sutskever’s Safe Superintelligence reportedly valued at $32B   Financial Times

• Goldman Sachs expects oil prices to decline through 2026  Reuters

• Oil extends decline as US-China trade war weighs on global growth outlook Reuters

Gen-Z Word of The Day

Minister Of Enjoyment

A person who is well-versed in the art of having a swell time. They don't just go out, but they make a movie out of it, and they do it so frequently that they make it seem like a political office.