Taiwan Semiconductor Manufacturing Co (TSMC) , the world’s largest contract chipmaker, reported a 54% jump in quarterly profit , surpassing forecasts, thanks to soaring demand for AI-related chips . This robust performance underscores TSMC’s dominance in producing advanced chips for AI applications, with key customers like Apple and Nvidia . TSMC's net profit for 3Q2024 reached T$325.3 billion (US$10.11 billion) , exceeding the T$300.2 billion forecasted by analysts. The company's revenue rose 36% year-on-year to US$23.5 billion , driven by strong demand for smartphone and AI chips utilizing its cutting-edge 3nm and 5nm technologies . The AI boom has been a major growth driver, with AI processors expected to account for a mid-teens percentage of TSMC's overall revenue for 2024. TSMC's capital spending for the current quarter is set to more than double to US$11.5 billion , and it expects capital expenditure to increase further in 2025 as demand remains robust. Chai
Three of Southeast Asia’s largest economies — Indonesia, the Philippines, and Thailand — are set to announce their monetary policy decisions today, as they contend with politics, inflation, currency volatility, and geopolitical risks. Each central bank faces unique pressures, but the general consensus is that rate hikes are off the table, with policymakers expected to either hold or cut rates.
Indonesia
Bank Indonesia is widely expected to hold its benchmark rate at 6%, according to a Bloomberg survey of 41 economists. In September, Indonesia surprised markets with an early rate cut as part of an easing cycle, but recent rupiah weakness — down over 2% this month — may prompt a more cautious approach. With low inflation and subdued consumption, the case for further rate cuts remains, though foreign exchange reserves could provide support through market intervention to stabilize the rupiah.
Philippines
The Bangko Sentral ng Pilipinas (BSP) is poised to cut its target reverse repurchase rate by 25 basis points, bringing it to 6%, as inflation fell to its lowest level in four years. BSP Governor Eli Remolona has signaled additional quarter-point cuts at each meeting, aiming for a 175-basis-point reduction by the end of 2025. Despite the peso’s 4% fall against the dollar, recent foreign inflows into the local stock market have stabilized the currency, supporting the central bank’s easing stance.
Thailand
The Bank of Thailand (BOT) is expected to resist government pressure for a rate cut and keep its benchmark interest rate at 2.5%, according to the majority of surveyed economists. Despite weak growth and below-target inflation, the BOT has maintained its focus on financial stability and managing high household debt. However, growing political pressure, including calls for a 25-basis-point cut, could lead to a shift in the coming months as the government seeks to boost growth.
While each nation faces distinct challenges, the broader Southeast Asian region remains highly sensitive to global economic health and evolving geopolitical dynamics.
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