TSMC's record-breaking revenue and growth in exports are driving Taiwan's economic growth, while exchange rate fluctuations and policy adjustments are influencing future directions.
In April 2025, Taiwan's economy saw several significant developments: TSMC achieved a record monthly revenue of NT$349.5 billion due to strong demand for AI chips; the country's exports grew by 29.9% compared to the previous year, with exports of ICT products surpassing those of electronic components for the first time; the New Taiwan dollar underwent significant fluctuations, with the central bank emphasizing policy independence; the Legislative Yuan passed a bill to add five national holidays, which could be implemented as early as September 28th, beginning with Teacher's Day; Wistron increased its investment in its U.S. subsidiary by $455 million, expanding its operations in Texas. These developments highlight Taiwan's evolving role in the restructuring of the global supply chain.
Key Updates
20h ago
TSMC's record-breaking revenue and growth in exports are driving Taiwan's economic growth, while exchange rate fluctuations and policy adjustments are influencing future directions.
In April 2025, Taiwan's economy saw several significant developments: TSMC achieved a record monthly revenue of NT$349.5 billion due to strong demand for AI chips; the country's exports grew by 29.9% compared to the previous year, with exports of ICT products surpassing those of electronic components for the first time; the New Taiwan dollar underwent significant fluctuations, with the central bank emphasizing policy independence; the Legislative Yuan passed a bill to add five national holidays, which could be implemented as early as September 28th, beginning with Teacher's Day; Wistron increased its investment in its U.S. subsidiary by $455 million, expanding its operations in Texas. These developments highlight Taiwan's evolving role in the restructuring of the global supply chain.
TSMC's April Revenue Hits Record High, Driven by AI Demand
Leading semiconductor foundry TSMC (Taiwan Semiconductor Manufacturing Company, 2330) announced on May 9 that its consolidated revenue for April 2025 reached NT$349.567 billion, marking a 22.2% increase month-over-month and a 48.1% increase year-over-year, setting a new monthly record. Cumulative consolidated revenue from January to April reached NT$1.1888 trillion, a 43.5% increase year-over-year. This growth is primarily driven by strong demand for 5-nanometer and 3-nanometer advanced processes, with AI chip shipments continuing to rise, becoming a key factor in boosting revenue.
According to TSMC's previous earnings call, the estimated revenue in USD for the second quarter of 2025 is between $28.4 billion and $29.2 billion, with an average quarterly increase of about 12.8%. The gross margin is estimated to be between 57% and 59%, with a median of 58%, slightly lower than the first quarter's 58.8%, mainly due to the start of mass production at the Arizona wafer plant in the US, which diluted profits.
Additionally, TSMC reiterated that the contribution of AI accelerators to revenue will double in 2025, and it plans to double the CoWoS advanced packaging capacity by 2025. The full-year capital expenditure is estimated to be between $38 billion and $42 billion, with about 70% allocated to advanced processes.
Exports Increase Nearly 30% Year-Over-Year, ICT Products Lead
According to the Ministry of Finance's April import and export statistics, export value reached $48.66 billion, a 29.9% year-over-year increase, marking the second-highest monthly figure ever recorded and the 18th consecutive month of growth. Import value was $41.46 billion, a 33% year-over-year increase. Cumulative export value from January to April was $178.23 billion, a 20.6% increase year-over-year; import value was $147.38 billion, a 20.4% increase year-over-year, resulting in a trade surplus of $30.85 billion.
Among these, the export value of information, communication, and audiovisual products reached $18.83 billion, a 60.5% year-over-year increase, surpassing electronic components for the first time to become the largest export category. Integrated circuit exports also increased by 28.2% to $15.34 billion. Exports to the US reached $13.15 billion, a 29.5% year-over-year increase; exports to ASEAN surged by 60.2% to $10.46 billion, both setting new monthly records.
New Taiwan Dollar Sees Volatile Fluctuations, Central Bank Emphasizes Policy Independence
The New Taiwan Dollar experienced significant fluctuations in early May. On May 2 and 5, it appreciated by 3.07% and 3.05%, respectively, marking the largest single-day gains in nearly 40 years. As of May 5, the New Taiwan Dollar had appreciated by 8.74% against the US dollar since 2025. However, starting May 6, the New Taiwan Dollar began to depreciate, closing at 30.308 on May 9, marking four consecutive days of depreciation.
The Central Bank emphasized that its exchange rate policy is independent and not influenced by Taiwan-US trade negotiations. The Central Bank noted that for every 1% appreciation of the US dollar, TSMC's operating profit is affected by about 0.4 percentage points. TSMC uses an exchange rate of 32.5 New Taiwan Dollars to 1 US dollar as the basis for financial reporting, and the recent appreciation to 30.3 New Taiwan Dollars poses pressure on its profits.
Additionally, life insurers have turned to other Asian currencies for hedging due to high costs associated with non-deliverable forward (NDF) hedging. Market analysis indicates that the appreciation of the New Taiwan Dollar has aligned with other Asian currencies like the Japanese Yen and Korean Won, limiting further short-term appreciation.
Five New Public Holidays Added, Starting with Teacher's Day
On May 9, the Legislative Yuan passed the third reading of the "Memorial Days and Holidays Implementation Act," adding five new public holidays, including Teacher's Day on September 28, Taiwan Restoration and Kinmen Victory Day on October 25, Constitution Day on December 25, Chinese New Year's Eve, and changing Labor Day on May 1 to a national holiday. The act also stipulates that if a holiday falls on a weekend, a compensatory day off should be provided. This amendment will take effect upon announcement, with the earliest implementation on this year's Teacher's Day on September 28.
Wistron Expands US Investment, Increases Capital by $455 Million
Electronics manufacturing giant Wistron Corporation (3231) approved a capital increase of $455 million for its US subsidiary WIUS during its board meeting on May 6, and expanded investment in two plants in Dallas, Texas, covering land, buildings, and machinery. This move is in response to US tariff policies and supply chain restructuring trends, strengthening manufacturing and service capabilities in North America.
Facing similar tariff and exchange rate fluctuations, Compal Chairman Ray Chen stated that they will accelerate the establishment of plants in Mexico and Texas, admitting that the recent "sharp appreciation" of the New Taiwan Dollar led to unhedged losses. Acer Chairman Jason Chen noted that while tariffs and exchange rates are manageable, the impact of uncertainty on consumer market confidence needs close monitoring.
References
- 台積報喜 上月營收攻頂…月增22%衝上3,495億 | 聯合新聞網
- AI晶片出貨續飆 台積電4月營收衝出高達3495.67億元單月新高 | 產業熱點 | 產業 | 經濟日報
- 台幣連四貶 央行再發聲明強調匯率政策獨立性 未受台美貿易談判左右 | 外匯市場 | 金融 | 經濟日報
- 台幣守穩30關 周升7.56角 | 外匯市場 | 金融 | 經濟日報
- 台幣升值風暴「25字頭」30年未見，是可能情境？一文拆解合理匯價
- 立院三讀增「4+1」國定假日 今年教師節全國就放假 - 政治 - 自由時報電子報
- AI動能撐盤！4月淡季不淡 台灣出口年增29.9%創歷史次高
- 工具機4月出口慘！ 機械公會：「這因素」衝擊大過對等關稅
- 台積電4月營收再創高、新台幣轉貶、三讀通過國定假日再+5 本周大事回顧 | Anue鉅亨 - 台股新聞
- 生策會年會 大咖雲集 陳瑞聰：加速赴德州設廠 | 產業熱點 | 產業 | 經濟日報
