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Time Is Money

Oct 31, 2024 • 4 min read

Trending:

U.S. TSMC Plant
Meta & Microsoft Earnings

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U.S. TSMC Plant:

TSMC (Taiwan Semiconductor Manufacturing Company) is advancing its U.S. expansion with a significant semiconductor production facility in Phoenix, Arizona, aimed at strengthening local chip manufacturing. Initially planned to produce 5nm chips, the plant has been upgraded to produce 4nm chips, largely to meet the high standards set by major clients like Apple, which is expected to source chips from this facility for its devices. Production is scheduled to start in 2025, with plans to support the U.S. tech supply chain as global demand for advanced chips grows.
Additionally, TSMC has committed to constructing a second facility in Arizona to produce 3nm chips by 2028, as well as a third, which will ultimately manufacture next-generation 2nm chips. This development has been supported by up to $6.6 billion in grants and potentially $5 billion in loans from the U.S. government as part of the CHIPS and Science Act, aiming to reduce reliance on overseas chip manufacturing, particularly from regions affected by geopolitical tensions. In total, TSMC’s Arizona investment could exceed $65 billion, creating thousands of jobs and reinforcing the U.S. position in high-tech semiconductor manufacturing.
As the world’s largest chipmaker, TSMC holds over 50% of the global market in advanced semiconductors, producing crucial components for leading tech companies like Apple, Nvidia, and AMD. However, TSMC’s central position also brings challenges due to its location in Taiwan, a region facing geopolitical tension with China. China has claimed sovereignty over Taiwan, and any conflict could disrupt the global semiconductor supply chain, impacting industries worldwide.
TSMC’s U.S. expansion is both a strategic and economic move to diversify its manufacturing operations, reducing reliance on Taiwan and reinforcing supply chain security. With its Arizona facilities, TSMC is aligning with the U.S. government’s CHIPS Act goals to build a stable, domestic semiconductor manufacturing base. This expansion reflects a growing trend of major tech players seeking geographical resilience and stability as advanced chips become increasingly critical in the global economy.

Meta & Microsoft Earnings:

Microsoft recently announced its financial performance for the fiscal first quarter (July to September), showing stronger-than-expected results. The company reported earnings per share of $3.30, above the expected $3.10, and revenue of $65.59 billion, exceeding the forecasted $64.51 billion. This represented a 16% increase in revenue from the same period last year, with net income reaching $24.67 billion. Microsoft restructured its reporting to include certain revenue streams like mobility, security, and parts of Windows within the “Productivity and Business Processes” segment, alongside Office software.
This segment posted $28.32 billion in revenue, a 12% year-over-year rise. To give investors a clearer view of its cloud business, Microsoft refined its reporting on Azure by excluding related areas like security and data analytics. Azure’s revenue grew by 33% for the quarter, aligning with CNBC’s estimates and surpassing some analyst projections. This shift highlights Azure’s significant role in Microsoft’s cloud strategy, offering a focused look at its core cloud infrastructure growth, which remains central to the company’s long-term plans.
Meta, also reporting results for the July to September quarter, posted a 19% year-over-year increase in sales, totaling $40.6 billion, above the anticipated $40.19 billion. Earnings per share were $6.03, beating the $5.29 forecast. While daily active users came in slightly below expectations at 3.29 billion, CEO Mark Zuckerberg credited growth to AI improvements across Instagram, WhatsApp, and other platforms. For the upcoming quarter, Meta expects revenue between $45 billion and $48 billion.
The company is also heavily investing in AI, with projected spending reaching up to $40 billion in 2024 and potentially $50 billion in 2025. Meta has integrated its AI assistant into Instagram and Facebook, with close to 500 million users, and introduced new AI models and tools, such as Llama 3.1 and Movie Gen, as part of its push into AI-driven capabilities. Both Microsoft and Meta’s strong earnings demonstrate the continued focus on AI and cloud technologies as core growth areas for major tech companies.

Statistic:

Largest banks and bank holding companies by market capitalization:

🇺🇸 JPMorgan Chase: $631.78B
🇺🇸 Bank of America: $326.32B
🇨🇳 ICBC: $281.83B
🇨🇳 Agricultural Bank of China: $226.41B
🇺🇸 Wells Fargo: $222.64B
🇨🇳 China Construction Bank: $195.45B
🇺🇸 Morgan Stanley: $192.31B
🇨🇳 Bank of China: $182.26B
🇨🇦 Royal Bank Of Canada: $175.22B
🇬🇧 HSBC: $167.75B
🇺🇸 Goldman Sachs: $165.60B
🇮🇳 HDFC Bank: $163.22B
🇦🇺 Commonwealth Bank: $158.34B
🇨🇳 CM Bank: $131.59B
🇺🇸 Charles Schwab: $131.51B
🇯🇵 Mitsubishi UFJ Financial: $123.10B
🇺🇸 Citigroup: $122.34B
🇮🇳 ICICI Bank: $111.60B
🇨🇭 UBS: $105.39B
🇨🇦 Toronto Dominion Bank: $97.29B
🇸🇦 Al Rajhi Bank: $94.12B
🇮🇳 State Bank of India: $88.44B
🇯🇵 Sumitomo Mitsui Financial Group: $83.32B
🇸🇬 DBS Group: $83.07B
🇮🇩 Bank Central Asia: $81.92B

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