13/01/2026

BIZ & FINANCE TUESDAY | JAN 13, 2026

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TSMC fourth-quarter profit poised to soar 27%

India proposes forcing phone makers to give source code

N EW DELHI: India proposes requiring smartphone makers to share source code with the government and make several software changes as part of a raft of security measures, prompting behind-the-scenes opposition from giants like Apple and Samsung. The tech firms have countered that the package of 83 security standards, which would also include a requirement to alert the government to major software updates, lacks any global precedent and risks revealing proprietary details, according to four people familiar with the discussions and a Reuters review of confidential government and industry documents. The plan is part of Prime Minister Narendra Modi’s efforts to boost security of user data as online fraud and data breaches increase in the world’s second-largest smartphone market, with nearly 750 million phones. IT Secretary S. Krishnan told Reuters on Saturday “any legitimate concerns of the industry will be addressed with an open mind”, adding it was “premature to read more into it”. A ministry spokesperson said in an emailed statement on Saturday it could not comment further due to ongoing consultation with tech companies on the proposals. After the story was published, an IT Ministry statement said late on Sunday that the consultations are aimed at developing “an appropriate and robust regulatory framework for mobile security”, and it “routinely” engaged with the industry “to better understand technical and compliance burden”. The ministry added it “refutes the statement” that it is considering seeking source code from smartphone makers, without elaborating or commenting on the government or industry documents cited by Reuters. Apple, Samsung, Google, Xiaomi and MAIT, the Indian industry group that represents the firms, did not respond to requests for comment. Indian government requirements have irked technology firms before. Last month it revoked an order mandating a state-run cyber safety app on phones amid concerns over surveillance. But the government brushed aside lobbying last year and required rigorous testing for security cameras over fears of Chinese spying. Xiaomi and Samsung – whose phones use Google’s Android operating system – hold 19% and 15%, respectively, of India’s market share and Apple 5%, Counterpoint Research estimates. Among the most sensitive requirements in the new Indian Telecom Security Assurance Requirements is access to source code – the underlying programming instructions that make phones work. This would be analysed and possibly tested at designated Indian labs, the documents show. The Indian proposals also require companies to make software changes to allow pre-installed apps to be uninstalled and to block apps from using cameras and microphones in the background to “avoid malicious usage”. “Industry raised concerns that globally security requirement have not been mandated by any country,” said a December IT Ministry document detailing meetings that officials held with Apple, Samsung, Google and Xiaomi. The security standards, drafted in 2023, are in the spotlight now as the government is considering imposing them legally. Smartphone makers closely guard their source code. Apple declined China’s request for source code between 2014 and 2016, and US law enforcement has also tried and failed to get it. India’s proposals for “vulnerability analysis” and “source code review” would require smartphone makers to perform a “complete security assessment”, after which test labs in India could check their claims through source code review and analysis. “This is not possible ... due to secrecy and privacy,” MAIT said in a confidential document drafted in response to the government proposal, and seen by Reuters. “Major countries in the EU, North America, Australia and Africa do not mandate these requirements.”– Reuters

TAIPEI: TSMC, the world’s largest manufacturer of advanced artificial intelligence chips, is expected to post a 27% jump in fourth-quarter net profit to a record due to the seemingly insatiable demand for AI infrastructure. Taiwan Semiconductor Manufacturing Co, the world’s top contract chipmaker and a key supplier to Nvidia and Apple, is forecast to report a net profit of T$475.2 billion (RM61 billion) for the three months through Dec 31, according to an LSEG SmartEstimate compiled from 19 analysts. SmartEstimates place greater weight on forecasts from analysts who are more consistently accurate. TSMC, Asia’s most valuable listed company with a market capitalisation of around US$1.38 trillion – more than twice that of South Korean rival Samsung o Company benefiting more than other chip foundries from AI boom

projected to grow 78% year-over-year in 2026. Shay Boloor, chief market strategist at Futurum Equities, said AI demand is clearly accelerating and TSMC continues to gain share at the leading edge, where competitors are struggling to keep pace. But a faster-than-expected ramp-up of overseas fabs could dilute margin gains expected from TSMC’s 2-nanometre node and pricing, he added. TSMC is investing US$165 billion to build chip factories in the US state of Arizona, and Secretary of Commerce Howard Lutnick said in a podcast released last week the company was set to invest more into the country. TSMC, which is currently in its pre-earnings quiet period, did not reply to a Reuters request for comment. It remains unclear how much US President Donald Trump’s tariffs will affect TSMC. Taiwan’s exports to the US are subject to a 20% tariff, but that excludes chips. TSMC’s Taipei-listed shares gained 44.2% last year, outperforming the 25.7% rise for the broader market. – Reuters

Electronics – is due to report on Thursday and will provide first-quarter and full-year guidance in an earnings call scheduled for 0600 GMT (2pm in Malaysia). The company last week posted a market-forecast-beating rise in fourth quarter revenue of 20.45%. Any profit result above T$452.3 billion would mark the company’s highest-ever quarterly net income and its eighth consecutive quarter of profit growth. Fourth-quarter revenue was driven by full utilisation of TSMC’s 3-nanometre capacity, fuelled by the iPhone 17 series using Apple’s A19 chip, as well as sustained robust demand for AI, said Galen Zeng, senior research manager at research firm IDC. Looking ahead, Zeng said IDC expects TSMC’s revenue to grow 25%–30% in 2026 in U.S. dollar terms, up from its previous forecast of 22%–26%, citing booming demand for AI server accelerators and significant contributions from the company’s next-generation 2-nanometre node. “The main driver is the explosive growth of the AI server accelerator manufacturing market,” Zeng said, adding that the market is

People walk out of TSMC Museum of Innovation at its headquarters in Hsinchu. – AFPPIC

South Korea conducts checks on increasing dollar deposits S EOUL: South Korean authorities

needed to be taken, an official said. The won weakened as much as 0.75% to 1,470.0 per dollar yesterday, extending losses for a ninth straight session to the weakest level in more than two weeks. Late last month, authorities rolled out market-stabilising measures to support the won, prompting a short-lived rebound from eight-month lows. South Korea said last week it will open up its currency market to allow 24-hour trading starting in July, further removing restrictions on onshore trading in a bid to win an upgrade to developed-market status. – Reuters

marketing activities of securities firms and banks as the reason behind the dollar-won rate trading beyond its usual range,” one bank source said, declining to be identified as they were not authorised to speak to media. Another source said: “It seems difficult for authorities to do anything other than preventing exchange rates from overshooting”, because customers were not selling dollars. The Financial Supervisory Service also recently asked local banks about increasing dollar deposits to check overall numbers, trends and to assess if any precautions

summoned seven local banks last week to question them about increasing US dollar deposits, officials and bank sources said yesterday, amid growing expectations of extended weakness in the won. Foreign exchange authorities held a meeting with the seven banks last Wednesday to make checks on foreign deposits and foreign exchange-related services, two bank sources told Reuters. An official at the Ministry of Economy and Finance confirmed the meeting was held, but did not provide details. “It seems authorities are seeing