00:00Matt, your top thoughts on these earnings today. Yeah, well, I mean, you know, the CapEx guy, which has been narrowed to the top end of the range, not surprising because everybody's just throwing more money at this opportunity. And again, probably the upgrade to the revenue outlooks are now mid 30 percent in U.S. dollar terms. Again, maybe not a surprise, but there's definitely some catch up for us to do there and an optimistic outlook for the year ahead.
00:24And, you know, interestingly, on the call that didn't finish too long ago, much of the Q&A was more about the kind of AI opportunity rather historically where you'd be people trying to kind of understand what's the demand for the latest iPhone or the kind of, you know, the next big kind of chip driver.
00:41And they clearly see the opportunities being big, but are they at the pace of this thing is moving like a freight train. What do they see in terms of the sustainability?
00:51Yeah, I think in the near term, they see a very robust sustainability of this because we're still at that kind of developmental stage where people are building the platforms and the capacity to hopefully one day kind of be met by all the demand.
01:06So I think even obviously there's some question marks about the China situation from a number of different angles, the constraints about selling technology into that market, China's constraints on all earth materials and whether that creates a new supply chain glitch for TSMC.
01:20But they seem very optimistic that even without China, there's still very robust demand for their platforms and obviously we heard similar things from ASML yesterday too.
01:30Yeah, because we're always asking for an expert to try and put the food chain together for us of how those rare earth expert controls are going to filter through and damage this market.
01:40Where does TSMC fit into that? And also if they're putting money into factories in the U.S., how can they protect themselves from that?
01:50It's a good question. I mean, they're clearly going to be impacted like everybody else.
01:53Even ASML yesterday said that they're going to be constrained if there were raw earth materials supply constraints from China.
02:01I think that's going to affect everybody. And, you know, obviously every Western country is rushing to try and find alternative sources for some of those materials.
02:11I mean, the kind of the U.S. situation is kind of fairly complex for TSMC.
02:15So you'll see one thing that came up on the call was the rivalry with Intel.
02:21So you have a lot of money going into Intel as an alternative foundry provider both in the U.S.
02:27Now, TSMC is investing in their own U.S. capability, but they're also going to continue to invest in Taiwan, too.
02:34So I think that they're going to be investing as much as they can to maintain their lead over people like Intel.
02:41I mean, they're over 50 percent of the overall foundry market right now and spending money to kind of protect that dominance.
02:47I mean, they're over 50 percent of the overall foundry market right now, but they're going to be investing in their own U.S.
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