TSMC CFO Wendell Huang stated on the 19th that financial markets are beyond the company's control, responding to a 7%+ stock decline on the 17th—the day after the earnings announcement on the 16th when shares rose approximately 1%. The stock drop followed the quarterly results release. Huang emphasized the company's focus on business fundamentals and structural multi-year demand in the semiconductor sector.
TSMC CFO Addresses Stock Volatility Following Earnings Release
In an interview with CNBC on the 19th (local time), Huang stated "financial markets are not an area we can control" when asked about the stock price movement. He added "we have no choice but to focus on the fundamentals of our business."
TSMC shares closed approximately 1% higher on the 16th, the day of the earnings announcement, but fell more than 7% on the 17th.
Huang explained that while component price pressures are increasing across the industry, TSMC's impact remains limited due to its strategy of focusing on high-value-added markets. "We are witnessing strong, structural, multi-year demand," Huang stated, adding "we have no intention of ceding market opportunities to anyone." He further noted that "as long as megatrends continue in the right direction, we will be able to continue providing profitable growth to shareholders."
TSMC Expands Arizona Investment to $265 Billion with Phase 1 Operational
Huang reported in the interview that the company is accelerating production capacity expansion at its Arizona facility. TSMC recently announced an additional $100 billion investment in Arizona. This brings the total planned investment for the Arizona project to $265 billion. The company also raised its capital expenditure guidance to $60-64 billion.
The additional $100 billion will be allocated not only to front-end wafer fabs but also to advanced packaging facilities for back-end processes. Huang stated that Phase 1 of the Arizona plant, which uses 4-nanometer technology, is already operational, adding "production scale will grow larger over the coming quarters."
Huang acknowledged that overseas business expansion may result in greater initial profitability dilution effects, but added that it will contribute to building the U.S. semiconductor ecosystem in the long term.
FAQ
Why did TSMC stocks fall on the 17th after rising on the 16th?
TSMC shares rose approximately 1% on the 16th during the earnings announcement but fell more than 7% on the 17th. CFO Wendell Huang stated that financial markets are outside the company's control and emphasized focusing on business fundamentals.
What is TSMC's total investment plan for the Arizona facility?
TSMC announced an additional $100 billion investment in Arizona, bringing the total planned investment for the Arizona project to $265 billion. The funds will support both front-end wafer fabs and advanced packaging facilities.
What is the current status of TSMC's Arizona factory operations?
Phase 1 of the Arizona plant using 4-nanometer technology is already operational. CFO Huang stated that production scale will grow larger over the coming quarters.
