{"id":55830,"date":"2025-11-10T02:38:24","date_gmt":"2025-11-10T06:38:24","guid":{"rendered":"https:\/\/stockmarketwatch.com\/stock-market-news\/japans-pm-takaichi-urges-boj-policy-alignment-on-wage-driven-inflation-tsmc-reports-robust-october-revenue-amid-ai-demand-scrutiny\/55830\/"},"modified":"2025-11-10T02:38:24","modified_gmt":"2025-11-10T06:38:24","slug":"japans-pm-takaichi-urges-boj-policy-alignment-on-wage-driven-inflation-tsmc-reports-robust-october-revenue-amid-ai-demand-scrutiny","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/japans-pm-takaichi-urges-boj-policy-alignment-on-wage-driven-inflation-tsmc-reports-robust-october-revenue-amid-ai-demand-scrutiny\/55830\/","title":{"rendered":"Japan&#8217;s PM Takaichi Urges BOJ Policy Alignment on Wage-Driven Inflation; TSMC Reports Robust October Revenue Amid AI Demand Scrutiny"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li><strong>Taiwan Semiconductor Manufacturing Co. (<a href=\"\/stock\/TSM\">TSM<\/a>)<\/strong> reported robust October 2025 revenue of <strong>NT$367.47 billion ($11.86 billion)<\/strong>, marking a <strong>16.9% year-on-year increase<\/strong>, primarily driven by persistent demand for AI chips.<\/li>\n<li>Despite the strong growth, some reports characterize it as a <em>slowing pace<\/em> compared to previous quarters, though this is largely attributed to <strong>production constraints<\/strong>, particularly in CoWoS packaging, rather than a moderation in underlying AI demand.<\/li>\n<li><strong>Japanese Prime Minister Sanae Takaichi<\/strong> has urged the <strong>Bank of Japan (BOJ)<\/strong> to maintain close policy cooperation with the government and to guide monetary policy towards achieving a stable <strong>2% inflation target<\/strong> supported by wage growth.<\/li>\n<li>Takaichi emphasized that the government holds the ultimate responsibility for economic policy, with the BOJ&#39;s monetary policy forming a part of that, and stated that Japan is still &quot;halfway&quot; to achieving sustainable inflation with wage increases.<\/li>\n<li>The BOJ faces a complex situation, with policymakers seeing a growing case for a near-term rate hike, while real wages have declined for nine consecutive months, lagging inflation, complicating the path to demand-driven price stability.<\/li>\n<\/ul>\n<p>Taiwan Semiconductor Manufacturing Co. (<a href=\"\/stock\/TSM\">TSM<\/a>), the world&#39;s largest contract chipmaker, announced its October 2025 revenue reached approximately <strong>NT$367.47 billion ($11.86 billion)<\/strong>, representing a <strong>16.9% increase<\/strong> year-on-year. This strong performance underscores the continued robust demand for semiconductors, particularly those fueling the artificial intelligence (AI) boom. TSMC is a critical supplier to major AI players like Nvidia (<a href=\"\/stock\/NVDA\">NVDA<\/a>), whose CEO, Jensen Huang, reportedly requested increased chip supplies, signaling sustained high demand.<\/p>\n<p>While the October revenue figures indicate significant growth, some analyses suggest a <em>slowing growth rate<\/em> compared to prior quarters, marking its slowest year-on-year increase since February 2024. However, this moderation is largely attributed to <strong>production constraints<\/strong>, especially bottlenecks in advanced CoWoS packaging, rather than a weakening in overall AI demand. TSMC&#39;s management views AI-related chip production as a <em>structural, long-term driver<\/em>, with capacity expected to remain &quot;very tight&quot; through 2025. Analysts anticipate TSMC&#39;s sales to rise <strong>27.4%<\/strong> in the current quarter, reinforcing a positive outlook for the company.<\/p>\n<p>Meanwhile, in Japan, Prime Minister Sanae Takaichi has articulated her administration&#39;s economic policy stance, urging the Bank of Japan (BOJ) to maintain close cooperation with the government. Takaichi emphasized the importance of guiding monetary policy towards achieving a stable <strong>2% inflation target<\/strong> that is sustainably supported by wage growth, rather than just cost-push factors. She stated that Japan is currently &quot;halfway&quot; to achieving this goal.<\/p>\n<p>The Prime Minister asserted that the government holds the ultimate responsibility for economic policy, with the BOJ&#39;s monetary policy being an integral part of this broader framework, though specific policy tools remain at the central bank&#39;s discretion. Takaichi&#39;s administration is set to finalize an economic stimulus package by November 21, which is expected to encourage the BOJ to prioritize strong economic growth alongside price stability, indicating a preference for maintaining low interest rates to support the ongoing recovery.<\/p>\n<p>The BOJ, however, faces a challenging environment. Policymakers have noted a growing case for a near-term interest rate hike, with some members stressing the need to confirm sustained wage-hike momentum. This comes as real wages in Japan have fallen for nine consecutive months, declining by <strong>1.4% year-on-year<\/strong> in September, as inflation continues to outpace pay gains. This persistent erosion of purchasing power complicates the BOJ&#39;s efforts to achieve demand-driven inflation and could influence the timing of any future rate adjustments.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways Taiwan Semiconductor Manufacturing Co. (TSM) reported robust October 2025 revenue of NT$367.47 billion ($11.86 billion), marking a 16.9% [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":50383,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"rank_math_schema_Article":[],"rank_math_focus_keyword":[],"rank_math_description":[],"financial_data_references":[],"stock_symbols_mentioned":[],"footnotes":""},"categories":[5012],"tags":[5127,633,7739,1555,3703,3786,4025,4223,4945,5027,5043],"class_list":["post-55830","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-breaking-news","tag-japan","tag-nvda","tag-wage-growth","tag-tsm","tag-ai","tag-tsmc","tag-boj","tag-inflation","tag-monetary-policy","tag-semiconductors","tag-technology"],"_links":{"self":[{"href":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/wp-json\/wp\/v2\/posts\/55830","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/wp-json\/wp\/v2\/comments?post=55830"}],"version-history":[{"count":0,"href":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/wp-json\/wp\/v2\/posts\/55830\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/wp-json\/wp\/v2\/media\/50383"}],"wp:attachment":[{"href":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/wp-json\/wp\/v2\/media?parent=55830"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/wp-json\/wp\/v2\/categories?post=55830"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/wp-json\/wp\/v2\/tags?post=55830"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}