16/01/2026

FRIDAY | JAN 16, 2026

17

BIZ & FINANCE

TSMC logs net profit jump on AI boom

Thin coffee trade in Vietnam as farmers reluctant to sell beans in bulk HANOI: Coffee trading in Vietnam remained sluggish this week due to limited supplies, as farmers were unwilling to release beans in bulk, while Indonesian premiums were flat, traders said yesterday. In the Central Highlands, farmers sold beans at 98,300 to 98,800 dong (RM15.16 to RM15.24 ) per kg, slightly higher than last week’s 97,500 to 98,200 dong. Robusta coffee for March delivery settled up US$2 at US3,955, as of Wednesday’s close. “The pace of contract finalisation has been slow as farmers and exporters struggle to agree on prices,“ a trader in the coffee belt said. “While exporters are pushing for lower prices during the peak harvest, farmers are holding onto their beans, hoping for better rates and clearer signals from the international market.“ Traders offered 5% black and broken-grade 2 robusta at a discount range of US$135 to US$165 per tonne to the March LIFFE contract, compared with last week’s range. In Indonesia, Sumatra robusta coffee beans for the February contract were offered at a US$210 premium this week, slightly lower than a US$215 premium a week ago, a trader said. – Reuters The Welfare Ministry and the NPS set up a consultative body in 2025 with foreign-exchange authorities to discuss ways to balance the fund’s earnings and its market impact. – Reuters S. Korea pension fund not mulling adjusting forex hedging or stock investment SEOUL: South Korea’s National Pension Service (NPS) said yesterday it was not currently considering adjusting its foreign-exchange hedging or local stock investment ratios, denying earlier media reports citing a senior official on the plan. Yonhap News and other local media outlets reported earlier in the day that the pension fund was reviewing adjustments to the ratios to help ease concerns about a weak won and bolster the local stock market, citing a senior official at the fund, who made the comment at a meeting with the Welfare Ministry. “Ratios for foreign exchange hedging and domestic stock investments are matters that are determined by the National Pension Fund Management Committee. The pension fund is not reviewing internally,” the NPS said in a text message to reporters. The Welfare Ministry oversees the pension fund’s investment policies and chairs the committee. The ministry did not immediately respond to a request for comment. The pension fund, which has 1.427 trillion won (RM3.9 trillion) in assets under management, has been raising its overseas investments for years in pursuit of higher returns. It reviews its five-year investment strategy every May.

TAIPEI: Taiwanese chipmaking titan TSMC announced yesterday a forecast-busting net profit for the fourth quarter in a sign of sustained global demand for artificial intelligence technology. TSMC is the world’s biggest contract maker of microchips used in everything from Apple phones to Nvidia’s cutting-edge AI hardware. The company has been a massive beneficiary of the AI revolution that has seen tech giants pour many billions of dollars into chips, servers and data centres. Some market-watchers fear the bubble of excitement around AI could burst and cause a stock rout, but TSMC’s results marked the latest high point for the firm. “Our conviction in the multi-year AI mega trend remains strong, and we believe the demand for semiconductors will continue to be very fundamental,” TSMC chairman CC Wei said. “By expanding our global footprint while continuing to invest in Taiwan, TSMC can continue to be the trusted technology and capacity provider of the global logic industry for years to come.” TSMC said net profit for the three months to December increased 35% year-on-year to NT$505.7 billion (RM65 billion), beating the NT$466.69 billion forecast by analysts.

o Conviction in multi-year mega trend remains strong: Chairman

through the US to other foreign countries” – enabling the government to take a cut from chips sold to China. Taiwan has been under pressure to move more chip production to US soil. TSMC pledged last year to invest an additional US$100 billion in the United States. But Trump’s administration has made clear it wants more of the critical technology made in the US. TSMC’s global expansion along with “new investments, specialty technologies and inflationary costs” were contributing to “cost challenges”, chief financial officer Wendell Huang warned. Despite US pressure and the constant threat of invasion from China,the island plans to keep making the “most advanced” chips on home ground, Taiwanese Deputy Foreign Minister Francois Chih-chung Wu said recently. – AFP

from levies. Taiwan has previously vowed to increase investment in the United States, purchase more US energy and boost defence spending in a bid to head off US President Donald Trump’s sweeping tariffs. The US government launched investigations under Section 232 into semiconductors and chipmaking equipment last year. Section 232 refers to part of the US Trade Expansion Act that allows tariffs to be imposed when national security is found to be at risk. Trump signed an order Wednesday imposing a 25% tariff on semiconductors that are “transshipped

Net revenue for the fourth quarter rose 20.5% from a year ago to NT$1.05 trillion, TSMC said, also beating expectations. TSMC – a bellwether for AI investment – expects capital spending to reach as high as $56 billion in 2026. Taiwan is a powerhouse in the manufacturing of semiconductor chips, which are the lifeblood of the global economy, as well as other electronics. The strong results came after Taipei said it had reached a “general consensus” with the United States on a trade deal that the island hopes will reduce its current 20% tariff and shield its semiconductor industry

Indonesia’s unprecendented crackdown has buoyed global palm oil prices due to fears of hit to output. – REUTERSPIC

Indonesia vows action against laggards on forestry fines

JAKARTA: Indonesia’s military-backed forestry task force has threatened legal action against dozens of plantation and mining companies refusing to pay hefty fines for operations in forest areas that authorities deem illegal. Goodhope Group, part of Sri Lankan conglomerate Carson Cumberbatch, and Singapore-based Musim Mas Group were among companies that did not attend when summoned, the task force said in an Instagram posting. The unprecendented crackdown since last year targeting oil palm plantations and mines has unnerved the industry, buoying global palm

of US$34 million, the task force added in the Instagram post. Goodhope and Musim Mas face fines of US$107 million and US$20 million, respectively. The companies did not immediately respond to requests for comment. Authorities have assessed potential fines of 109.6 trillion rupiah for palm oil companies and 32.63 trillion rupiah for mining companies, for operations in forest areas, Attorney General Sanitiar Burhanuddin, one of the leaders of the task force set up by President Prabowo Subianto, said last year. – Reuters

said in Wednesday’s statement. As many as 25 of the 32 mine companies and 29 of the 83 plantation firms summoned to pay fines have objected, failed to attend or sought rescheduling, it said. Seven mining and 54 palm oil companies have paid or agreed to pay fines of 9.3 trillion rupiah (RM2.2 billion), the task force added. Companies that complied include the palm oil units of conglomerate Salim Group which paid fines equivalent to US$136 million, Best Agro Group, which forked over US$98 million in fines, and US$57 million by a unit of Sampoerna Agro. Astra Agro Lestari also paid a fine

prices for fear it will hit output, and more recently, triggering rallies in the prices of metals like tin. “For companies that still object, those that fail to appear for summons or continue unauthorised activities in forest areas, the task force will take more progressive legal action to ensure the state’s sovereignty,” spokesperson Barita Simanjuntak said. The task force has taken over 8,800 hectares of mining areas turning out items such as nickel, coal, quartz sand and limestone, and palm planations across 4.1 million hectares, or roughly the size of the Netherlands, it