Amid tensions between the United States and China over Taiwan, chipmaker Taiwan Semiconductor Manufacturing Co Ltd(TSMC) chairman Mark Liu said "everybody wants a peaceful Taiwan Strait" since no one wants to disrupt the semiconductor supply chain in Taiwan.

TSMC is the world's largest chipmaker with a reported market capitalisation of $567 billion and is reportedly the eleventh most valuable listed company in the world.&nbsp;

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"As to an invasion by China, let me tell you everybody&nbsp;wants&nbsp;to have a peaceful&nbsp;Taiwan&nbsp;Strait. Because it is to every country's benefit, but also because of the semiconductor supply chain in&nbsp;Taiwan&nbsp;no one&nbsp;wants&nbsp;to disrupt it,"&nbsp;Liu said during&nbsp;an earnings call.

In a rare development, Taiwan's government allowed TSMC to sign a deal with BioNTech SE to import coronavirus vaccines after an outcry over slow pace of vaccination in the country.

TSMC had declared last year that it would build a multi-billion dollar factory in Arizona even as the US government is keen to ease the chip shortage with the auto industry hit hard amid the pandemic.&nbsp;

TSMC's revenue grew 28 per cent&nbsp;to a record $13.29 billion in the April-June period and it forecast revenue for the quarter ending September at $14.6 billion to $14.9 billion.

The company said it will expand production in China and was looking at setting up a plant in Japan as worldwide demand for chips to make smartphones, cars and laptops continue to grow.

Liu's comment comes as China has repeatedly claimed sovereign rights over Taiwan.

Japan's defence ministry also referred to the US-China tussle over Taiwan in a paper asserting that the "overall military balance between China and Taiwan is tilting to China's favour, and the gap appears to be growing year by year."

The defence ministry said it was following the developments closely "with a sense of crisis" even as China slammed Japan declaring that it has "exaggerated the so-called China threat" while adding that the country has made irresponsible remarks about China's legitimate maritime activities.

Deputy Prime Minister Taro Aso had earlier said that his country would "have to defend Taiwan" if it is invaded by China.

(With inputs from Agencies)

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Amid tensions between the United States and China over Taiwan, chipmaker Taiwan Semiconductor Manufacturing Co Ltd(TSMC) chairman Mark Liu said "everybody wants a peaceful Taiwan Strait" since no one wants to disrupt the semiconductor supply chain in Taiwan.

Amid tensions between the United States and China over Taiwan, chipmaker Taiwan Semiconductor Manufacturing Co Ltd(TSMC) chairman Mark Liu said "everybody wants a peaceful Taiwan Strait" since no one wants to disrupt the semiconductor supply chain in Taiwan. TSMC is the world's largest chipmaker with a reported market capitalisation of $567 billion and is reportedly the eleventh most valuable listed company in the world. Watch: "As to an invasion by China, let me tell you everybody wants to have a peaceful Taiwan Strait. Because it is to every country's benefit, but also because of the semiconductor supply chain in Taiwan no one wants to disrupt it," Liu said during an earnings call. In a rare development, Taiwan's government allowed TSMC to sign a deal with BioNTech SE to import coronavirus vaccines after an outcry over slow pace of vaccination in the country. TSMC had declared last year that it would build a multi-billion dollar factory in Arizona even as the US government is keen to ease the chip shortage with the auto industry hit hard amid the pandemic. TSMC's revenue grew 28 per cent to a record $13.29 billion in the April-June period and it forecast revenue for the quarter ending September at $14.6 billion to $14.9 billion. The company said it will expand production in China and was looking at setting up a plant in Japan as worldwide demand for chips to make smartphones, cars and laptops continue to grow. Liu's comment comes as China has repeatedly claimed sovereign rights over Taiwan. Japan's defence ministry also referred to the US-China tussle over Taiwan in a paper asserting that the "overall military balance between China and Taiwan is tilting to China's favour, and the gap appears to be growing year by year." The defence ministry said it was following the developments closely "with a sense of crisis" even as China slammed Japan declaring that it has "exaggerated the so-called China threat" while adding that the country has made irresponsible remarks about China's legitimate maritime activities. Deputy Prime Minister Taro Aso had earlier said that his country would "have to defend Taiwan" if it is invaded by China. (With inputs from Agencies)

Everybody wants peace in Taiwan Strait because no one wants to disrupt semiconductor supply chain: TSMC chief

The United States on Thursday said that Taiwan is its&nbsp;natural partner&nbsp;when it comes to semiconductors and promoting this cooperation is a priority.

Washington has increasingly viewed tech-powerhouse and democratically ruled Taiwan as a key part of its strategy to shift global supply chains away from China, especially when it comes to technology and chip companies.

Speaking at the groundbreaking ceremony for a new chip fabrication plant for Powerchip Semiconductor Manufacturing Corp in central Taiwan, Brent Christensen, director of the American Institute in Taiwan (AIT), said he was there "to restate the US&nbsp;government's focus on supply chain security".

Also read|&nbsp;<a href="https://www.wionews.com/world/us-to-continue-assisting-taiwans-self-defence-capabilities-says-white-house-369156">US to continue assisting Taiwan's self-defence capabilities, says White House&nbsp;</a>

"Both President Biden and President&nbsp;Tsai&nbsp;have rightly identified the semiconductor industry as a key strategic priority, not only for economic innovation, but also national security," he said, according to a transcript of his comments provided by his office.

Christensen pointed to last year's launch of the US-Taiwan Economic Prosperity Partnership Dialogue as a way the two can "build a coalition to counter the PRC's unfair economic and investment policies", referring to the People's Republic of China.

"The United States and Taiwan are the globe's most natural partners in the semiconductor supply chain with an abundance of companies across the value chain, and it will continue to be an AIT priority to support this cooperation."

Taiwan President&nbsp;Tsai, attending the same event, said she would guarantee that the government will fully support the development of the semiconductor industry, describing it as a "mountain range protecting the country".

Taiwan's central role in producing chips has shot into focus during the COVID-19 pandemic, with soaring demand for laptops, tablets and other equipment to power the work-from-home trend benefiting firms like Taiwan Semiconductor Manufacturing Co Ltd (TSMC), the world's largest contract chipmaker.

Foreign governments and companies have also beseeched Taiwan to help resolve a shortage of auto chips which have idled factories around the world.

US&nbsp;companies are not standing still either, and this week Intel Corp announced a $20 billion plan to expand its advanced chip manufacturing capacity.

The United States on Thursday said that Taiwan is its natural partner when it comes to semiconductors and promoting this cooperation is a priority. Washington has increasingly viewed tech-powerhouse and democratically ruled Taiwan as a key part of its strategy to shift global supply chains away from China, especially when it comes to technology and chip companies.

The United States on Thursday said that Taiwan is its natural partner when it comes to semiconductors and promoting this cooperation is a priority. Washington has increasingly viewed tech-powerhouse and democratically ruled Taiwan as a key part of its strategy to shift global supply chains away from China, especially when it comes to technology and chip companies. Speaking at the groundbreaking ceremony for a new chip fabrication plant for Powerchip Semiconductor Manufacturing Corp in central Taiwan, Brent Christensen, director of the American Institute in Taiwan (AIT), said he was there "to restate the US government's focus on supply chain security". Also read| US to continue assisting Taiwan's self-defence capabilities, says White House "Both President Biden and President Tsai have rightly identified the semiconductor industry as a key strategic priority, not only for economic innovation, but also national security," he said, according to a transcript of his comments provided by his office. Christensen pointed to last year's launch of the US-Taiwan Economic Prosperity Partnership Dialogue as a way the two can "build a coalition to counter the PRC's unfair economic and investment policies", referring to the People's Republic of China. "The United States and Taiwan are the globe's most natural partners in the semiconductor supply chain with an abundance of companies across the value chain, and it will continue to be an AIT priority to support this cooperation." Taiwan President Tsai, attending the same event, said she would guarantee that the government will fully support the development of the semiconductor industry, describing it as a "mountain range protecting the country". Taiwan's central role in producing chips has shot into focus during the COVID-19 pandemic, with soaring demand for laptops, tablets and other equipment to power the work-from-home trend benefiting firms like Taiwan Semiconductor Manufacturing Co Ltd (TSMC), the world's largest contract chipmaker. Foreign governments and companies have also beseeched Taiwan to help resolve a shortage of auto chips which have idled factories around the world. US companies are not standing still either, and this week Intel Corp announced a $20 billion plan to expand its advanced chip manufacturing capacity.

'Natural partners': US says promoting chip cooperation with Taiwan is priority

Taiwan Semiconductor Manufacturing Co Ltd (TSMC) on Thursday said it expects a stronger half-year on <a href="https://www.google.com/url?client=internal-uds-cse&amp;cx=006054055338965708568:09spwrlibei&amp;q=https://www.wionews.com/world/china-soon-to-issue-5g-license-as-it-enters-crucial-period-223979&amp;sa=U&amp;ved=2ahUKEwjzz7_2pr7jAhWKiXAKHdeuASUQFjAAegQIARAC&amp;usg=AOvVaw3Jz3ha5QNLHaEe2H2YzeoJ">5G telecoms</a> demand, and that a dispute over chip-making materials between Japan and South Korea in its most uncertain factor.

The world's largest contract chipmaker reported a decline in second-quarter profit but said demand is likely to recover during the rest of 2019 particularly from smartphone makers, hampered at present by the impact of a Sino-US&nbsp;trade war.

"Although our business continues to be impacted by a global slowing economy ... we have also passed the bottom of the cycle of our business and again began to see demand increasing," Chief Executive Officer and Vice Chairman Chung Ching Wei told analysts during an earnings briefing.

Taiwan's supply chain manufacturers have been navigating slowing global demand for smartphones - a primary source of revenue - as well as market disruption stemming from tit-for-tat import tariffs between China and the United States, plus the latter's ban on US companies doing business with Chinese telecoms equipment maker Huawei Technologies Co Ltd.

Adding to risk factors, Japan last week tightened curbs on exports of high-tech materials used in smartphone displays and chips to South Korea, home to the world's biggest memory chip makers, Samsung Electronics Co Ltd, and SK Hynix Inc.

TSMC Chairman Mark Liu said the dispute is a major uncertainty for the coming months as it is likely to impact technology supply chains, as Japan dominates the market for the materials in question.

Earlier, TSMC, a proxy for technology demand as its clients include iPhone maker Apple and chip leader Qualcomm Inc, reported a 7.6% decline in April-June net profit at T$66.77 billion ($2.15 billion), meeting analyst estimates.

Revenue rose 3.3% to T$241 billion but fell 1.4% to $7.75 billion in US&nbsp;dollar terms - still topping both the firm's forecast and the average of 23 analyst estimates compiled by Refinitiv.

Business in the third quarter will be driven by increased demand for fifth-generation telecommunications (5G) equipment as well as for smartphones spurred by new product launches, and the fourth quarter will be even stronger, Wei said.

TSMC forecast a gross profit margin of 46% to 48% for the third quarter, and an operating margin of 35% to 37%, compared with 47.4% and 36.6%, respectively, a year earlier.

The chipmaker also said it expected annual capital expenditure for the year to exceed the high end of its earlier forecast of $10 billion to $11 billion due to strong 5G demand.

Even so, analysts were cautious about TSMC's growth outlook for the coming months, citing a slower-than-expected introduction of 5G technology and still-tepid demand for smartphones, which they said accounted for nearly half of its first-quarter sales.

"With a still-slow demand recovery and excessive inventory, we think wafer orders from fabless companies might remain weak," Fubon Securities analyst Sherman Shang wrote in a research note prior to TSMC's earnings announcement.

TSMC's short-term downside, however, could be supported by "major customers' recovery in 2020 from a very low base in 2019, such as Apple," Shang wrote.

Indicating evolving market conditions, the spread of accelerating the spread of 5G networks helped Dutch semiconductor equipment maker ASML Holding NV, a supplier to TSMC, beat analysts' second-quarter earnings estimates on Wednesday.

Prior to TSMC's announcement, shares in the chipmaker closed up 0.8% versus a 0.25% fall in the wider market. The stock has risen around 13% so far this year.

Taiwan Semiconductor Manufacturing Co Ltd (TSMC) on Thursday said it expects a stronger half-year on 5G telecoms demand, and that a dispute over chip-making materials between Japan and South Korea in its most uncertain factor.

Taiwan Semiconductor Manufacturing Co Ltd (TSMC) on Thursday said it expects a stronger half-year on 5G telecoms demand, and that a dispute over chip-making materials between Japan and South Korea in its most uncertain factor. The world's largest contract chipmaker reported a decline in second-quarter profit but said demand is likely to recover during the rest of 2019 particularly from smartphone makers, hampered at present by the impact of a Sino-US trade war. "Although our business continues to be impacted by a global slowing economy ... we have also passed the bottom of the cycle of our business and again began to see demand increasing," Chief Executive Officer and Vice Chairman Chung Ching Wei told analysts during an earnings briefing. Taiwan's supply chain manufacturers have been navigating slowing global demand for smartphones - a primary source of revenue - as well as market disruption stemming from tit-for-tat import tariffs between China and the United States, plus the latter's ban on US companies doing business with Chinese telecoms equipment maker Huawei Technologies Co Ltd. Adding to risk factors, Japan last week tightened curbs on exports of high-tech materials used in smartphone displays and chips to South Korea, home to the world's biggest memory chip makers, Samsung Electronics Co Ltd, and SK Hynix Inc. TSMC Chairman Mark Liu said the dispute is a major uncertainty for the coming months as it is likely to impact technology supply chains, as Japan dominates the market for the materials in question. Earlier, TSMC, a proxy for technology demand as its clients include iPhone maker Apple and chip leader Qualcomm Inc, reported a 7.6% decline in April-June net profit at T$66.77 billion ($2.15 billion), meeting analyst estimates. Revenue rose 3.3% to T$241 billion but fell 1.4% to $7.75 billion in US dollar terms - still topping both the firm's forecast and the average of 23 analyst estimates compiled by Refinitiv. Business in the third quarter will be driven by increased demand for fifth-generation telecommunications (5G) equipment as well as for smartphones spurred by new product launches, and the fourth quarter will be even stronger, Wei said. TSMC forecast a gross profit margin of 46% to 48% for the third quarter, and an operating margin of 35% to 37%, compared with 47.4% and 36.6%, respectively, a year earlier. The chipmaker also said it expected annual capital expenditure for the year to exceed the high end of its earlier forecast of $10 billion to $11 billion due to strong 5G demand. Even so, analysts were cautious about TSMC's growth outlook for the coming months, citing a slower-than-expected introduction of 5G technology and still-tepid demand for smartphones, which they said accounted for nearly half of its first-quarter sales. "With a still-slow demand recovery and excessive inventory, we think wafer orders from fabless companies might remain weak," Fubon Securities analyst Sherman Shang wrote in a research note prior to TSMC's earnings announcement. TSMC's short-term downside, however, could be supported by "major customers' recovery in 2020 from a very low base in 2019, such as Apple," Shang wrote. Indicating evolving market conditions, the spread of accelerating the spread of 5G networks helped Dutch semiconductor equipment maker ASML Holding NV, a supplier to TSMC, beat analysts' second-quarter earnings estimates on Wednesday. Prior to TSMC's announcement, shares in the chipmaker closed up 0.8% versus a 0.25% fall in the wider market. The stock has risen around 13% so far this year.

TSMC expects 5G earnings boost, flags South Korea-Japan spat as risk