[News] New Taiwan Dollar Rises Rapidly, Pressuring TSMC and MediaTek Margins

According to a report from TechNews, the recent sharp appreciation of the New Taiwan dollar (NTD) has sparked market concerns over potential foreign exchange losses—especially for export-driven sectors like semiconductors, represented by companies such as TSMC.

The report notes that on May 2, the USD/NTD exchange rate stood at 1 USD to 32.1266 NTD. Just three days later, on May 5, it had dropped to 29.6710—marking a rapid 7% appreciation of the NTD. This sudden shift caught many exporters off guard and is expected to significantly affect financial performance across the tech sector.

The impact is especially evident in Taiwan’s semiconductor industry. During its Q1 2025 earnings call, TSMC forecasted Q2 consolidated revenue of USD 28.4–29.2 billion, based on an assumed exchange rate of 32.5 NTD to 1 USD. Under that scenario, it projected a gross margin of 57%–59% and an operating margin of 47%–49%.

However, with the exchange rate now falling below 30, analysts estimate that every 1% appreciation in the NTD could reduce TSMC’s operating margin by 0.4 percentage points. As TechNews underscores, the currency shift could place substantial pressure on TSMC’s Q2 profitability.

The rapidly appreciating New Taiwan dollar is also expected to impact MediaTek, Taiwan’s leading IC design company. In its recent earnings call, the company forecasted Q2 2025 revenue of NTD 121.4–133.5 billion, based on an assumed exchange rate of 1 USD to 32 NTD.

MediaTek guided for a gross margin of 47.0% ± 1.5% and an operating expense ratio of 30% ± 2%. But given the current exchange rate environment, the report notes that MediaTek is also likely to face foreign exchange losses, adding further uncertainty to its quarterly performance.

During its 1Q25 earnings call last week, MediaTek’s CEO stated that the company could not provide full-year guidance due to U.S. tariff uncertainty but remains broadly optimistic amid strong AI demand, as noted by Reuters.

Read more

• [News] TSMC Projects 11–14% Q2 Sales Growth, Flags 2–3% Annual Margin Hit from Early Overseas Ramp
• [News] MediaTek Set to Launch Dimensity 9400+ 5G AI Chipset, First Devices Reportedly Arriving in April

(Photo credit: TSMC)