technology
TSMC Quarterly Profit Rises 77% While Bank Cuts 2026 Global Growth Forecast
Taiwan Semiconductor Manufacturing Company reported quarterly profit of 707 billion New Taiwan dollars on July 16. The results underscore North Asia's lead in AI supply chains while Southeast Asian economies adjust projections amid slower value-chain gains and Middle East conflict effects.
Jul 16, 7:06 AM·2m read1 source
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Taiwan Semiconductor Manufacturing Company reported quarterly profit of 707 billion New Taiwan dollars, or $22 billion, on July 16. The figure marked a 77% increase from a year earlier and exceeded analyst expectations. The results reflect surging demand for AI processors and components produced by firms in Taiwan, South Korea, and Japan.
Southeast Asia accounts for 6% of global intermediate manufacturing, compared with 15% for China. Singapore produces semiconductors, Malaysia handles chip assembly and testing, and both Malaysia and Thailand assemble AI servers. Edward Lee, Standard Chartered’s chief economist and head of FX for ASEAN and South Asia, said Southeast Asia has not moved up the value chain despite foreign direct investment talk.
The Singapore government has committed more than 1 billion Singapore dollars, or $776 million, to fund fundamental and applied AI research. Lee said Singapore, Malaysia, and Vietnam stand to gain from higher electronics demand tied to AI, while the Philippines faces potential pressure on its business process outsourcing sector.
On July 14 the IT & Business Process Association of the Philippines lowered its best-case 2028 revenue projection to $50.5 billion and its headcount projection to 2.14 million jobs.
The group had previously forecast $59 billion in revenue and 2.5 million jobs. The industry generated $40.3 billion in revenue and employed 1.89 million people last year, contributing 8% of GDP. Standard Chartered lowered its 2026 global growth forecast to 3.0% from 3.4% on Wednesday, citing conflict-induced downgrades in the Middle East.
Eric Robertsen, the bank’s chief strategist and global head of research, said the revision reflects developments that have already occurred, though he expected continued economic scarring into the second half of the year. Transit through the Strait of Hormuz has remained largely blocked during the Iran war, with renewed attacks on ships and a revived U.S. blockade following a ceasefire breakdown.
