{"id":64872,"date":"2026-07-16T02:08:13","date_gmt":"2026-07-16T06:08:13","guid":{"rendered":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/tsmc-hits-record-profit-as-global-tensions-and-industrial-shifts-reshape-markets\/64872\/"},"modified":"2026-07-16T02:08:13","modified_gmt":"2026-07-16T06:08:13","slug":"tsmc-hits-record-profit-as-global-tensions-and-industrial-shifts-reshape-markets","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/tsmc-hits-record-profit-as-global-tensions-and-industrial-shifts-reshape-markets\/64872\/","title":{"rendered":"TSMC Hits Record Profit as Global Tensions and Industrial Shifts Reshape Markets"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li><strong>TSMC (<a href=\"\/stock\/TSM\">TSM<\/a>)<\/strong> reported a record <strong>77.4% surge in second-quarter net profit<\/strong> to T$706.6 billion ($21.99 billion), significantly beating market expectations as AI chip demand continues to outpace supply.<\/li>\n<li>The <strong>UK government<\/strong> has officially taken <strong>British Steel<\/strong> into public ownership to protect strategic steelmaking capacity, marking the first major industrial nationalization in the country since the 1980s.<\/li>\n<li><strong>China\u2019s imports from Africa<\/strong> surged by as much as <strong>40.2% year-on-year<\/strong> in June following the expansion of a zero-tariff policy for 53 African nations, driven by a &quot;hunger&quot; for critical minerals and agricultural goods.<\/li>\n<li><strong>US Defense Secretary Pete Hegseth<\/strong> updated his Israeli counterpart on ongoing military operations against <strong>Iran<\/strong>, as US strikes target coastal defenses and missile sites amid a naval blockade of Iranian ports.<\/li>\n<li><strong>Shanghai Nickel<\/strong> contracts climbed above <strong>3%<\/strong>, hitting a three-week peak as supply concerns re-emerged due to the indefinite closure of the <strong>Strait of Hormuz<\/strong> by Iran.<\/li>\n<\/ul>\n<h2>TSMC Dominates with Record AI-Driven Growth<\/h2>\n<p>Taiwan Semiconductor Manufacturing Co. (<a href=\"\/stock\/TSM\">TSM<\/a>) has solidified its position as the primary beneficiary of the global artificial intelligence boom. The world&#39;s largest contract chipmaker posted a <strong>77.4% jump in net profit<\/strong> for the April-June period, reaching a record <strong>T$706.6 billion ($21.99 billion)<\/strong>. This performance far surpassed the <strong>T$632.6 billion<\/strong> analysts had anticipated.<\/p>\n<p>The company&#39;s revenue for the quarter rose <strong>36% to T$1.27 trillion<\/strong>, fueled by insatiable demand for advanced <strong>3-nanometre<\/strong> and <strong>5-nanometre<\/strong> process technologies. As a key supplier to <a href=\"https:\/\/stockmarketwatch.com\/stock\/NVDA\" data-internallinksmanager029f6b8e52c=\"15\" title=\"stock: NVDA\">Nvidia<\/a> (<a href=\"\/stock\/NVDA\">NVDA<\/a>) and Apple (<a href=\"\/stock\/AAPL\">AAPL<\/a>), <strong>TSMC<\/strong> is expected to raise its full-year revenue growth outlook during its upcoming earnings call.<\/p>\n<h2>UK Nationalizes British Steel to Secure Strategic Interests<\/h2>\n<p>In a historic shift in industrial policy, the <strong>British government<\/strong> has brought <strong>British Steel<\/strong> into public ownership effective July 16, 2026. The move follows the passage of the <strong>Steel Industry (Nationalisation) Act<\/strong>, which was deemed necessary to protect the UK&#39;s national interest and prevent the closure of blast furnaces at the <strong>Scunthorpe<\/strong> site.<\/p>\n<p>The government intervened after the company\u2019s previous Chinese owner, <strong>Jingye Group<\/strong>, struggled with high energy costs and inadequate investment. The nationalization aims to safeguard <strong>33,000 direct and supply-chain jobs<\/strong> and ensure the domestic production of &quot;virgin steel&quot; essential for the UK&#39;s defense and infrastructure sectors.<\/p>\n<h2>Geopolitical Escalations in the Middle East and South China Sea<\/h2>\n<p>Military tensions are rising as <strong>US Central Command (CENTCOM)<\/strong> launched waves of strikes against <strong>Iranian<\/strong> coastal defenses and missile sites. The operations are part of a broader effort to weaken Iranian military capabilities after Tehran announced the &quot;indefinite closure&quot; of the <strong>Strait of Hormuz<\/strong>. <strong>Brent crude<\/strong> prices responded by hitting a one-month high of <strong>$84.95 a barrel<\/strong>.<\/p>\n<p>In Southeast Asia, the <strong>Philippine Foreign Ministry<\/strong> reported &quot;ongoing momentum&quot; in talks for a <strong>South China Sea Code of Conduct<\/strong>. Serving as the <strong>ASEAN chair<\/strong> for 2026, the Philippines aims to finalize a legally binding agreement by year-end to de-escalate maritime disputes with <strong>China<\/strong>.<\/p>\n<h2>Commodity Markets and Trade Shifts<\/h2>\n<p><strong>Shanghai Nickel<\/strong> prices surged over <strong>3%<\/strong> to hit a three-week peak, breaking the <strong>130,000 yuan\/mt<\/strong> level. The rally is supported by supply tightening in <strong>Indonesia<\/strong>, where the government refused to raise mining quotas, and renewed sulfur supply concerns stemming from the conflict in the Middle East.<\/p>\n<p>Meanwhile, <strong>Goldman Sachs (<a href=\"\/stock\/GS\">GS<\/a>)<\/strong> reaffirmed a <strong>&quot;buy&quot; rating<\/strong> on <strong>Hong Kong Exchanges and Clearing (HKEX)<\/strong> (<a href=\"\/stock\/0388.HK\">0388.HK<\/a>). The bank cited Beijing\u2019s increased policy support and a <strong>60% increase in the Bond Connect Southbound<\/strong> quota as key drivers for a recovery in average daily turnover despite a <strong>5% decline<\/strong> in the exchange&#39;s share price year-to-date.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways TSMC (TSM) reported a record 77.4% surge in second-quarter net profit to T$706.6 billion ($21.99 billion), significantly beating 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