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TSMC posted a record quarterly profit on Thursday and raised its revenue outlook as booming demand for artificial intelligence chips continued to fuel growth at the world’s largest contract chipmaker.
Taiwan-based TSMC reported earnings of $4.31 per share for the April-June quarter, beating analysts’ expectations.
Revenue came in at $40.2 billion (€36.8bn), above analysts’ estimates of $39.63 billion (€34.6bn).
In local currency, net profit reached a record NT$706.6bn (€19.1bn), up 77% from a year earlier, while revenue climbed 36% to NT$1.27 trillion (€36.8bn), as appetite for the advanced chips TSMC makes for customers such as Nvidia and Apple showed no sign of cooling.
Given that it manufactures semiconductors for almost every major chip designer, the Hsinchu-based firm’s results are closely read as a gauge of the wider sector and of broader AI demand itself, just as investors fret over a possible bubble.
CEO Che-Chia Wei described global AI-related demand as “extremely robust” and said he expected it to remain very strong until around 2029 or 2030. On that basis, TSMC now forecasts 2026 revenue growth of slightly above 40% year on year, up from its previous guidance of more than 30%.
Thursday’s figures confirmed what monthly sales data had already suggested.
As reported on Monday, June revenue jumped 67.9% year on year, and first-half sales rose 35.6% from the same period in 2025, slightly ahead of analysts’ consensus forecasts for the quarter.
TSMC shares rose about 1% after the earnings release but later pared those gains as a sell-off in AI-related shares weighed on benchmarks across Asia during Thursday’s session.
Alongside the results, TSMC said it would spend an additional $100 billion (€87.4bn) to expand its manufacturing capacity in the US, on top of the $165 billion (€144bn) already committed to building six fabrication plants in Arizona.
The move would bring the company’s total US investment pledges to around $265 billion (€231bn).
The fresh funds are expected to fund four further Arizona plants dedicated to the most advanced chips, those of 2 nanometres and below, and are intended to “support the strong multi-year demand” from the company’s leading American customers, CEO Che-Chia Wei said during the firm’s earnings conference.
TSMC also said it would spend more this year than previously planned, increasing its capital expenditure budget to between $60 billion (€52.4bn) and $64 billion (€55.9bn), up from an earlier range of $52 billion (€45.4bn) to $56 billion (€48.9bn).
The announcement follows a trade agreement struck earlier this year between the Trump administration and Taiwan, under which Taiwanese companies committed to invest at least $250 billion (€218bn) in the US technology sector inreturn for lower tariffs.
Additional sources • AP
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Tower Semiconductor (TSEM) said it plans to invest about $3B to expand its advanced semiconductor manufacturing capacity in Japan, backed by about $1B in grants from the Japanese government. The expansion is aimed at meeting rising demand from AI and data center
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TSMC said on Monday that June revenue rose 67.9% year on year to NT$398.27 billion (€10.8bn), bringing the first-half of the year revenue to NT$2.4 trillion (€65.4bn), a 35.6% increase from the same period in 2025.
Based on the company’s monthly revenue disclosures, second-quarter revenue amounted to roughly NT$1.27 trillion, ahead of the NT$1.264 trillion (€34.4bn) consensus forecast from 20 analysts surveyed by LSEG.
Monday’s release covers June revenue and cumulative first-half sales only.
TSMC will publish its full second-quarter earnings on Thursday, including net profit, gross margin, operating margin and updated financial guidance.
At its April earnings presentation, TSMC said it expects full-year 2026 revenue to grow by more than 30% in US dollar terms and projected capital expenditure of between $52 billion (€45.5bn) and $56 billion (€49bn) as it expands manufacturing capacity to meet AI-driven demand.
New fabrication plants are under construction or in preparation in Arizona, Japan and Germany, reflecting both the scale of customer demand and government efforts to strengthen domestic semiconductor manufacturing.
Shares in TSMC rose about 1% following Monday’s revenue update.
Investors will now turn their attention to Thursday’s full earnings report for updates on profitability, margins, full-year guidance and the rollout of the company’s two-nanometre manufacturing technology, which is already attracting strong customer interest.
The company sits at the centre of one of the largest investment cycles in the semiconductor industry’s history.
Many of the world’s leading AI processors, including Nvidia’s GPUs and much of the custom AI silicon designed by Amazon, Google and Microsoft, are manufactured by TSMC in Taiwan.
At the company’s April earnings presentation, CEO Che-Chia Wei described AI demand as “extremely robust”, driven by the shift from chatbots that answer questions to agentic AI systems capable of taking actions.
That transition requires significantly greater computing power, increasing demand for the advanced chips TSMC manufactures.
Advanced technologies, defined as chips produced using process technologies of seven nanometres or smaller, accounted for 74% of wafer revenue in the first quarter.
TSMC’s three-nanometre technology alone contributed 25% of wafer revenue.
Reports have indicated that Nvidia has reserved roughly 60% of TSMC’s advanced chip-packaging capacity for 2026, highlighting continued supply constraints across the AI semiconductor market.
South Korean chipmaker SK hynix, known for its high-bandwidth memory chips, is preparing to raise roughly $28 billion (€24.5bn) on Wall Street, a sum surpassed only by SpaceX’s record flotation last month.
It is an extraordinary outcome for a firm that once survived on job cuts and asset sales.
Pricing is due on Thursday, with trading expected to begin on Friday under the ticker SKHY.
SK hynix is issuing 17.79 million new shares in the form of American depositary receipts (ADRs), each representing a tenth of a Seoul-listed share, and cornerstone investors including Baillie Gifford and funds run by Coatue Management have signalled interest in up to $7 billion (€6.1bn) worth of stock.
The target was trimmed from an initial $29.6 billion (€25.9bn) after the shares slipped in recent weeks.
ADRs are certificates traded on a US exchange that stand in for shares held abroad, letting American investors buy into a foreign company without dealing in a foreign currency or market.
Unlike a conventional flotation, this is not SK hynix’s stock market debut. Its primary listing remains on Seoul’s Kospi index, and the Nasdaq offering simply opens a second, dollar-denominated avenue for investors to gain exposure.
The listing arrives with the company already worth more than $1 trillion (€876bn), a threshold also crossed by rivals Samsung Electronics and Micron, after a surge of more than 200% this year.
Proceeds will fund new fabrication plants, chiefly a vast cluster in Yongin, plus its first US packaging facility in Indiana.
The move is partly about valuation. Korean-listed chipmakers have long traded at a discount to American peers, and a Nasdaq listing offers a chance to close that gap.
The AI build-out has transformed the industry’s economics.
As hyperscalers pour hundreds of billions into data centres, memory prices have exploded, with DRAM up 44% and NAND flash up 53% in a single quarter, according to Citi Research, and manufacturers have already sold most of their 2026 production.
SK hynix reported first-quarter revenue above 50 trillion won (€29bn) and operating margins north of 70%, figures unheard of for a chipmaker, and commands about 60% of the high-bandwidth memory (HBM) market, according to Counterpoint Research.
Yet the timing is delicate.
Memory has always been a brutally cyclical business. The AI-driven rally that transformed SK hynix has begun to wobble as chip stocks sold off sharply across Asia last week, and Samsung lost more than $100 billion (€87.5bn) in market value despite posting a record profit.
Investors are increasingly asking whether the vast sums being spent on AI infrastructure will earn a return, a question that the Bank for International Settlements raised in late June when it warned that the boom could seed the next financial crash.
Those concerns are not new for SK hynix.
SK hynix traces its roots to Gukdo Construction, founded in 1949, which moved into electronics in 1983 as Hyundai Electronics, an arm of the Hyundai empire.
The Asian financial crisis of the late 1990s brought disaster. Under an IMF-backed restructuring of the Korean economy, Hyundai absorbed rival LG’s semiconductor business, creating a giant that promptly buckled under its own debts.
Salvation came in stages.
Renamed Hynix Semiconductor in 2001, a contraction of “high” and “electronics”, the firm cut jobs, shed assets and split from Hyundai. Profits returned, but the violent swings of the DRAM market left it perpetually exposed.
Starved of capital, it was rescued in 2012 by the telecoms conglomerate SK Group, becoming SK hynix. The takeover proved decisive. SK Group poured money into high-bandwidth memory, then a costly and unprofitable technology that few believed in.
Today it has become the scarcest commodity in AI computing. And the firm employs nearly 46,900 people.
Additional sources • AFP
This photo, taken Monday, shows a training aircraft flying near a military airport in Gwangju. The South Korean government announced the airport as the future site for a semiconductor production cluster. Photo by Yonhap
A military airport in the southwestern city of Gwangju was selected Monday as the site for a government-led project to create a semiconductor production cluster, a presidential official said.
The selection was made in a meeting earlier in the day between government officials and top executives of leading chipmakers — Samsung Electronics Co. and SK hynix Inc. — to discuss follow-up measures for the investment project, presidential chief of staff Kang Hoon-sik said at a press briefing.
The president will hold monthly meetings to personally check the progress in the massive investment project, he added.
The envisioned chip production cluster is part of the government’s “three megaprojects” initiative, centered on large-scale investments in semiconductors, physical artificial intelligence (AI) and AI data centers in regional areas.
Under the chip cluster project, the two leading chipmakers have pledged to invest a combined 800 trillion won (US$522 billion), marking the single-largest investment plan to date in the southwestern Gwangju and Honam area.
“Through consultations with related ministries, the government will promptly finalize the (administrative) process of designating the candidate site,” Kang said.
The presidential official noted that companies proposed the military site for the production complex, describing it as an 8.3 million-square-meter track of already leveled land that would save time for preparation.
Its proximity to the city’s downtown and railway station would also facilitate easy access for workers and the transportation of goods, the official said.
Kang noted that the president has decided to hold monthly meetings to review the progress of the projects and establish a dedicated body within Cheong Wa Dae to oversee them.
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Industry Minister Kim Jung-kwan announces semiconductor investment projects during an investment briefing meeting chaired by President Lee Jae Myung at Cheong Wa Dae in Seoul on Monday. Pool photo by Yonhap
South Korea plans to develop a new semiconductor production base in the country’s southwestern region through 800 trillion won (US$517.9 billion) in corporate investments that will create four memory chip fabrication plants, Industry Minister Kim Jung-kwan said Monday.
Kim unveiled the investment plan to transform the Gwangju and Jeolla regions into the nation’s second major semiconductor cluster, alongside the existing hub in the Seoul metropolitan area, during a national investment briefing chaired by President Lee Jae Myung at Cheong Wa Dae.
“Relying on a single production base in the Seoul metropolitan area is no longer sufficient to meet surging semiconductor demand,” Kim said, noting that constraints on power and water resources limit further expansion under existing plans.
The semiconductor investment is part of the government’s “three mega projects” initiative, which calls for large-scale investments by chip giants Samsung Electronics Co. and SK hynix Inc., as well as other companies, in semiconductors, physical artificial intelligence (AI) and AI data centers.
Kim said the Chungcheong region will be developed into an advanced semiconductor packaging hub through 81 trillion won in investment to meet growing packaging demand as chip production expands, while the Daegu and North Gyeongsang regions will be fostered as innovation hubs for semiconductor materials, components and equipment.
He added that the government will help companies accelerate semiconductor investment by bringing forward the construction schedule for new fabrication plants by as much as 12 years, from the mid-to-late 2040s to the mid-2030s.
To support the expansion, the government vowed to streamline permits and construction procedures while investing in critical infrastructure, including electricity and industrial water supplies.
At the meeting, attended by Samsung Electronics Chairman Lee Jae-yong and SK Group Chairman Chey Tae-won, Kim outlined a government-industry plan to invest 30 trillion won over the next 15 years to support the entire semiconductor value chain, from research and development and chip design to testing and manufacturing.
The ambitious industrial blueprint is aimed at transforming the country from a global manufacturing powerhouse into a leader in the artificial intelligence era, anchoring its strategy on semiconductors, AI infrastructure and physical AI.
For the robotics sector, Kim said the government will foster an AI-powered robotics industry to strengthen South Korea’s manufacturing competitiveness in the intensifying global competition.
Kim warned that China has already begun mass-producing humanoid robots through regional manufacturing hubs, underscoring the need for South Korea to accelerate the commercialization and mass production of its own humanoid robots.
“We must accelerate the foundation for mass production,” Kim said, adding that the government plans to create early domestic demand by procuring humanoid robots for education, defense and disaster response.
The initiative aims to raise South Korea’s share of the global humanoid robot market from just 1 percent last year to 20 percent over the long term.
As the third pillar of the strategy, Minister of Science and ICT Bae Kyung-hoon outlined a plan to expand the nation’s AI data center infrastructure, emphasizing that ample data is important for South Korea to secure a leading position in the global physical AI race.
“The next three years will be the golden time to become No. 1 in the area of physical AI,” Bae said. “The government will lead the physical AI sector, by designating it as a national strategic industry.”
Under the plan, an initial investment of 550 trillion won will be spent to build 8.4 gigawatts (GW) of AI data centers by 2029. The ministry will gradually expand the infrastructure by 10 GW until 2035, Bae said.
To support the initiative, the government pledged to ensure adequate supplies of electricity and industrial water, and strengthen power infrastructure around existing semiconductor clusters.
Once the data infrastructure is in place, the science ministry plans to develop a general-purpose foundation model for physical AI in the next three years, based on a world model, or AI tools that understand the dynamics of the real world.
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LG Chem CEO Kim Dong-chun speaks during a town hall meeting at the company’s head office in Seoul on Monday. Photo by LG Chem
SEOUL, June 23 (UPI) — South Korea’s LG Chem said Tuesday it will invest nearly $10 billion over the next decade to foster futuristic industries powered by the artificial intelligence boom.
The Seoul-based company plans to spend $9.7 billion on research and development through 2035, concentrating on advanced materials for semiconductors, mobility, robotics and anticancer drugs.
LG Chem said that the initiative comes as profitability in its traditional petrochemical business dipped because of global oversupply and fierce competition.
Through the investment, the chemical giant vowed to achieve a double-digit operating profit margin by the end of the decade.
To complement its organic growth strategy, LG Chem said it will pursue external growth opportunities, including mergers and acquisitions. It recently established an organization dedicated to that goal.
LG Chem unveiled the long-term strategy during a town hall meeting Monday, where CEO Kim Dong-chun stressed the need to strengthen both existing businesses and future growth engines.
“While strengthening the competitiveness of our existing businesses, we will focus our capabilities on future growth pillars to leap forward as a technology-driven converting company,” Kim said.
LG Chem defines a “tech-driven converting company” as an enterprise that leverages its accumulated technological expertise to create high-value-added products and differentiated profit streams.
The share price of LG Chem plunged 9.75% on the Seoul bourse on Monday, while the benchmark KOSPI plummeted 9.99%. LG Chem is a major subsidiary of LG Group, whose businesses also include LG Electronics, LG Display and LG Uplus.
SpaceX and xAI CEO Elon Musk speaks during a panel discussion during the 56th annual meeting of the World Economic Forum (WEF), in Davos, Switzerland, 22 January 2026. File Photo by GIAN EHRENZELLER / EPA
June 12 (Asia Today) — Hanmi Semiconductor said Friday it will invest about 50 billion won, or $32.9 million, in SpaceX as part of a strategic move tied to future cooperation in artificial intelligence chip manufacturing.
The South Korean semiconductor equipment maker said in a regulatory filing it plans to acquire shares in SpaceX on Monday. SpaceX, founded by Elon Musk, is a private aerospace company known for rocket technology and its Starlink satellite communications service.
Hanmi Semiconductor said the investment was made with an eye toward potential cooperation related to Musk’s Terafab project, an AI semiconductor manufacturing plan involving SpaceX, Tesla and xAI.
The project is aimed at building chip production capacity for Musk’s companies, including SpaceX, Tesla and xAI, as demand grows for AI semiconductors, satellite data services and global network infrastructure.
Market expectations for SpaceX have grown ahead of its expected public listing, with some estimates putting the company’s value at about 2,600 trillion won, or roughly $1.7 trillion.
Hanmi Semiconductor said it made the investment to position itself early in the expansion of AI infrastructure from semiconductors and data centers into aerospace, satellite communications and data industries.
The company has previously invested in businesses with future growth potential. Hanmi Semiconductor Chairman Kwak Dong-shin has pursued several investments connected to his relationship with Peter Thiel, the co-founder of Palantir.
Crescendo Equity Partners, a global private equity firm backed by Thiel, invested in Hanmi Semiconductor in 2013, marking the first investment of its kind in a Korean company. Hanmi Semiconductor said its latest investment in SpaceX also stems from that connection.
Kwak and Hanmi Semiconductor jointly invested in semiconductor equipment maker HPSP in 2021, generating a return of about 639% from the original investment. In 2024, Kwak personally invested 31 billion won, or about $20.4 million, in Line Next, a global Web3 company affiliated with LY Corp., acquiring an 8.5% stake.
A Hanmi Semiconductor official said the company decided to invest in SpaceX, a participant in Musk’s Terafab project, as AI industry growth expands beyond semiconductors and data centers into aerospace, satellite communications and data businesses.
The company said it plans to reinvest expected returns from the SpaceX investment into its core semiconductor equipment business to support sustainable growth and increase corporate and shareholder value.
— Reported by Asia Today; translated by UPI
© Asia Today. Unauthorized reproduction or redistribution prohibited.
Original Korean report: https://www.asiatoday.co.kr/kn/view.php?key=20260612010004261
Prime Minister Narendra Modi says his talks with the Dutch PM also focused on expanding cooperation in defence and security.
Published On 17 May 202617 May 2026
India’s Tata Electronics has signed a deal with Dutch technology giant ASML to build a major semiconductor plant in western India, as Prime Minister Narendra Modi visited the Netherlands during his European tour.
The agreement, announced on Saturday, will support the development of Tata’s semiconductor facility in Dholera, Gujarat – Modi’s home state.
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ASML, Europe’s largest technology company by market value, manufactures advanced lithography machines used to produce high-end microchips found in products ranging from mobile phones to cars.
The Dutch company said it would help “establish and ramp up” production at the plant by supplying its cutting-edge chipmaking tools.
Tata Electronics plans to invest $11bn in the facility, which is expected to manufacture chips for artificial intelligence, the automotive industry and other sectors.
ASML chief executive Christophe Fouquet said the company saw “many compelling opportunities” in India’s growing semiconductor industry.
“We are committed to establishing long-term partnerships in the region,” Fouquet said in a statement.
The deal comes as India and the Netherlands move to deepen economic ties, with New Delhi seeking foreign technology and investment to boost manufacturing and create jobs.
The European Union has increasingly viewed India – the world’s most populous country and one of its fastest-growing economies – as a key future market.
During his visit, Modi held talks with Dutch Prime Minister Rob Jetten and met King Willem-Alexander.
“My conversations with Prime Minister Rob Jetten were extensive and covered a wide range of topics,” Modi wrote on X.
“One of them was defense and security. I spoke about the possibility of drawing up an action plan for the defense industry as quickly as possible. We can also collaborate in sectors such as space travel, maritime systems, and maritime security.”
Modi also addressed members of the Indian diaspora and is expected to inspect centuries-old Chola copper plates being returned to India by Leiden University.
Indian and Dutch officials are also discussing a more flexible visa arrangement for Indian students and workers in the Netherlands.
Modi will next travel to Sweden for talks with Prime Minister Ulf Kristersson focused on trade, innovation and green technology cooperation. The visit marks his second trip to the country since attending the first India-Nordic summit in 2018.
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The major AI company Anthropic is exploring a potential partnership with the British semiconductor firm Fractile to secure a steady supply of chips for custom inference and reduce the significant overheads associated with current semiconductor solutions.
According to reports, these talks represent a strategic effort by the San Francisco-based firm to decrease its dependency on Nvidia whilst enhancing the speed and efficiency of its current and next-generation models.
As the global demand for generative AI capacity continues to climb, the financial burden of the hardware required to run these systems has become a primary hurdle for developers.
Anthropic, which has received multi-billion-dollar investments from both Amazon and Google, currently relies heavily on Nvidia’s H100 units alongside custom processors provided by its cloud partners.
However, the high market price and limited availability of these industry-standard chips have squeezed profit margins, prompting firms to look elsewhere.
According to industry analysts, a deal with a specialised firm like Fractile could allow Anthropic to exert greater control over its technical infrastructure.
This strategy reflects a broader trend among tech giants, including Microsoft and Meta, who are increasingly moving away from general-purpose chips in favour of internal or boutique designs.
Founded in 2022 by Oxford PhD Walter Goodwin, Fractile has gained significant attention for its unconventional approach to processor design.
Unlike standard chips that must constantly shuttle data between the processor and separate memory modules, Fractile’s “memory-compute fusion” architecture keeps data directly on the chip using static random-access memory, or SRAM, which does not need to be refreshed.
According to the British start-up, this method can run large language models up to a hundred times faster than existing hardware while lowering operational costs by 90%.
While these performance claims are impressive, the technology is still in the development phase.
Fractile has not yet launched a commercial product, and its specialised chips are not expected to be ready for full-scale data centre deployment until 2027.
Despite the long timeline, the start-up is reportedly in negotiations to raise $200 million (€170.5m) in funding at a valuation exceeding $1 billion (€853m).
The potential partnership highlights the growing significance of the UK’s semiconductor sector on the world stage. If a formal agreement is reached, Fractile could become Anthropic’s fourth major chip supplier, joining the ranks of Nvidia, Google and Amazon.
According to market reports, the discussions remain at an early stage and no binding contract has been signed.
However, the interest from a major player such as Anthropic suggests that in the AI race, the ability to deliver faster and cheaper compute power is the defining factor.
A supervisor conducts a preparatory session for applicants taking the GSAT exam at Samsung Electronics’ Human Resources Development Center in Suwon, Gyeonggi Province. Graphic by Asia Today and translated by UPI
April 26 (Asia Today) — Thousands of young job seekers took part in Samsung’s flagship hiring exam over the weekend, highlighting continued demand for positions at South Korea’s largest conglomerate despite broader labor market challenges.
The test, known as the GSAT, was conducted Saturday and Sunday for applicants across 18 affiliates, including Samsung Electronics, Samsung SDI and Samsung Electro-Mechanics.
Often referred to as the “Samsung exam,” the GSAT is a standardized aptitude test used in the company’s large-scale recruitment system, which has been maintained for 70 years – the longest among major South Korean firms.
Samsung said the exam has been conducted online since 2020 following the COVID-19 pandemic, allowing candidates to take the test remotely using personal computers. The company conducted system checks in advance to ensure stable network and device conditions for all applicants.
While the exact number of test-takers was not disclosed, analysts said strong participation reflects the company’s global leadership and profitability, particularly amid a boom in the semiconductor sector.
Samsung began accepting applications in March and will proceed with interviews in May, followed by medical screenings before finalizing hires.
The conglomerate’s open recruitment system, introduced in 1957, remains unique among South Korea’s largest business groups. While many companies have shifted toward experienced hires, Samsung continues to offer regular entry-level recruitment twice a year, providing more predictable opportunities for graduates.
According to a 2025 survey by the Federation of Korean Industries, university students cited reduced entry-level hiring as the biggest challenge in job searches. Samsung’s continued use of open recruitment has helped sustain its reputation as one of the most desirable employers in the country.
Lee Jae-yong has repeatedly emphasized job creation and talent development, saying earlier this year that the company has capacity to expand hiring. He has also pledged continued investment in high-value industries alongside overseas expansion.
Samsung plans to continue recruiting talent in semiconductors, as well as emerging sectors such as artificial intelligence and biotechnology, as it seeks to strengthen its global competitiveness.
The GSAT was first introduced in 1995 under former chairman Lee Kun-hee, who called for an objective and globally competitive hiring system. Since then, other major South Korean companies have developed similar aptitude tests for recruitment.
— Reported by Asia Today; translated by UPI
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Original Korean report: https://www.asiatoday.co.kr/kn/view.php?key=20260426010008138
