5425 Overview

Increased Risk of Military Conflict: BCA Research has raised the probability of military escalation between China and Taiwan to 35% over the next year, with a 10% chance of full-scale conflict and a 25% chance of limited or proxy war, citing deteriorating U.S.-China relations under President Trump.

Strategic Implications for China: The report suggests that if Beijing does not act militarily within the next 12 months, it may not do so for a long time, as current U.S. tariffs provide an opportunity for China to justify aggressive actions without full invasion.

TSMC's Position on Joint Ventures: TSMC CEO C.C. Wei denied any discussions regarding joint ventures or technology-sharing with other companies, specifically addressing speculation about a potential collaboration with Intel.

Financial Performance and Market Outlook: TSMC reported a 60% increase in net profit for Q1, maintaining a strong revenue outlook while noting a decline in sales from China due to U.S. export restrictions, with North America now representing a larger share of total sales.