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
Republican presidential candidate Donald Trump defended his economic agenda during a speech at the Economic Club of Chicago, arguing that his proposed tariff increases and closer consultations with the Federal Reserve would drive substantial growth, despite economists' warnings that his policies could spur inflation and increase the national debt.
Trump dismissed concerns that tariffs could disrupt supply chains or burden consumers, insisting that higher levies would prompt companies to return manufacturing to the U.S. He also downplayed worries about the economic impact of deporting millions of undocumented migrants, claiming legal migration would offset the labor shortage. “We are all about growth,” Trump said, receiving applause for his promise to protect American companies and bring jobs back.
Trump, whose proposals include a 60% tariff on Chinese imports and 10% duties on all other imports, argued that tariffs would prevent foreign countries from undermining key U.S. industries like auto manufacturing. While some economists estimate his tariffs could raise $200 billion annually, Trump countered that critics were simply “wrong” about the effectiveness of tariffs.
The former president also reiterated his desire to influence Federal Reserve policy, emphasizing that a president should be able to consult with the Fed on interest rate decisions. While he avoided saying whether he would remove Fed Chair Jerome Powell, Trump mocked the Fed’s job as being easy and lauded the influence of the role.
Trump’s economic proposals, including deregulation, tax cuts, and lowering the corporate tax rate to 15%, would cost trillions and further strain the U.S. federal deficit, which is already close to $2 trillion annually. However, Trump dismissed deficit concerns, arguing that his platform would generate sufficient growth to cover costs.
In the speech, Trump also addressed issues such as the possible sale of U.S. Steel to Nippon Steel and the Justice Department’s consideration of breaking up Google, though he did not commit to specific actions on either front. He defended his relationship with Russian President Vladimir Putin, stating that positive ties with foreign leaders are beneficial for the U.S.
As the race between Trump and Vice President Kamala Harris intensifies ahead of the election, Trump is counting on his economic message to resonate with voters in key battleground states such as Pennsylvania and Michigan.
source: theedgemalaysia
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