00:002026 is already shaping up to be a strong year for TSMC. The company posted record
00:05profits at its quarter one earnings call this Thursday, driven by huge demand for its most
00:09advanced AI chips. TSMC says net profit jumped 58 percent in the first quarter, beating expectations.
00:16It made about 18.2 billion U.S. dollars from January to March, its highest quarterly profit
00:22ever. That growth is coming from its most advanced chips, including 3 nanometer technology and
00:27packaging used in AI. Analysts say demand is now outpacing supply, with major clients like NVIDIA
00:34and Apple relying on TSMC. But despite the strong results, some warn the company's stock may not keep rising.
01:04So even as earnings surge, short-term momentum could slow. Still, TSMC's rally has helped lift
01:11Taiwan's broader market. Taiwan's total market capitalization has now topped 4 trillion U.S.
01:17dollars, overtaking the U.K. to become the world's seventh largest. At the same time,
01:22the company is ramping up spending overseas, raising concerns about rising costs. It plans to invest
01:28up to 30 billion U.S. dollars this year into its global operations, part of a wider 165 billion U
01:35.S.
01:35dollar effort to build up chip production in the United States.
02:03That raises questions about margins and profits going forward.
02:08So while demand for AI chips remains strong, rising costs and global expansion efforts
02:13will be key considerations to watch out for this year. Joseph Wu and Lily Lamatina in Taipei for Taiwan Plus.
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