Taiwan’s telecom giants post strong July results, driven by diverse growth engines

Taiwan’s three major telecom operators released their July 2025 operational results on August 11, all showing strong performances. Chunghwa Telecom leveraged rapid growth in its information and communications technology (ICT) business to set multiple record highs. Taiwan Mobile benefited from merger synergies while accelerating its push into the AI data center (AIDC) market. Far EasTone Telecommunications maintained its industry-leading 5G penetration rate while expanding its digital services portfolio.

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TSMC leads with high gross margins, while second- and third-tier foundries operate at full capacity but struggle to profit

The foundry industry faces operational pressures in 2025 due to external factors such as tariffs, exchange rates, and geopolitical tensions. Only TSMC continues to achieve record-breaking annual performance by systematically overcoming these challenges. Meanwhile, second and third-tier foundries experience declining results. SMIC and Hua Hong have expanded order volumes, yet their profits have not seen significant corresponding growth, and PSMC remains mired in losses.

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China orders Alibaba, ByteDance to stop buying Nvidia H20 chips as tech tensions escalate

China’s growing mistrust of Nvidia’s H20 GPU is spilling into open confrontation, with regulators ordering leading internet firms, including Alibaba and ByteDance, to suspend orders amid security concerns. The move comes despite US President Donald Trump’s formal approval of the chip’s export, underscoring the deep political undercurrents shaping tech supply chains.

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Taiwan, US eye closer trade ties in ongoing tariff negotiations

Taiwan’s lead negotiator and vice premier of the Executive Yuan Li-chiun Cheng held a press conference on August 11, 2025, during which she stated that since the US aims to become the global center for AI, there is significant room for complementary cooperation between Taiwan and the US. She emphasized that the government and industry players are joining forces to foster strategic collaboration, build a favorable foundation, and strive for better negotiation outcomes with the US.

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