Upbeat TMSC Boosts TWD

Late yesterday TMSC released earnings, a positive report and upbeat guidance helped TWD strengthen, USD/TWD fell around 0.3% after the report, dropping to 28.340.

• TMSC said that a global shortage of semiconductors across industries from automaking to consumer electronics may extend into 2022, which led the firm to lift targets on spending and growth for this year. TSMC now expects investments of about $30 billion on capacity expansions and upgrades this year, after spending $8.8 billion in the first three months. The company had previously forecast spending of as much as $28 billion. Sales in the June quarter may be between $12.9 billion and $13.2 billion, beating the average $12.8 billion seen by analysts, though its target for gross margin came in below expectations at 49.5% to 51.5%. Full-year revenue may climb 20% in dollar terms, ahead of the "mid-teens" growth predicted in January.