Taiwan Electric announced that in the recently held board meeting, it decided to approve TSMC Global, a subsidiary that increased its 100% stake in the amount of no more than US$10 billion to reduce the cost of foreign exchange avoidance. Due to the...
Taiwan Electric announced that in the recently held board meeting, it decided to approve TSMC Global, a subsidiary that increased its 100% stake in the amount of no more than US$10 billion to reduce the cost of foreign exchange avoidance. Due to the good performance of this avoidance last quarter, the pressure of the sudden appreciation of NT$ in the short term caused by the NT$' impact on NT$', which still earned a huge profit of RMB 15.36 per share in the second quarter. Therefore, NTD will continue its long-standing avoidance action to reduce the risk of the fluctuation of the new NTD currency exchange rate.
According to previous statements by NT$1, the report of a NT$1 reduction in revenue for every 1% appreciation of the USD, and the sensitivity of gross profit margin to the same 1% exchange rate changes is about 40 basis points. Therefore, the exchange rate of the new Taiwan dollar rose sharply and the market was originally expected to have a significant loss in the second quarter of Taiwan Electricity. However, as the financial report of the second quarter was revealed, Taiwan Electricity still recorded the most powerful single-quarter harvest in history, and the exchange rate immediately became a hypothesis. The main reason is that Taiwan Power has made contributions to its special avoidance practice of continuously increasing its capital and holding 100% of its overseas subsidiaries. The outside world believes that only Taiwan Power can do it among Taiwanese companies.
Based on the previous statement when Taiwan Electric accepted foreign media access, taking the financial report for the second quarter of 2025 as an example, the total profit of NT$29.61 billion in the second quarter of 2025 was NT$23.82 billion in the first quarter of 2025. The profit growth was mainly due to the fact that the company injected NT$10 billion in the British Viking Islands Company in the second quarter of 2025, which effectively reduced the US dollar's exchange rate during the rapid appreciation of NT$. In response to this, Taiwan Financial Manager Huang Renzhao said during an interview that the British Viking Islands company Taiwan Power Global has been established for 20 years and has been continuously making betting actions, so it is not a move for the recent exchange rate problem. However, such an approximate natural avoidance action has reduced the appreciation pressure of the appreciation rate of NTD.
Huang Renzhao further pointed out that this way of avoiding exchange rate fluctuations in financial operation, that is, TSMC Global, as early as June 2025, increased its 20-year-old TSMC Global by increasing its 20-year-old TSMC itself reduced its exposure and avoided the evaluation losses that it needed to bear for holding USD. In addition, the US dollar is exported and converted into capital by increasing capital. Because the holding company itself is a US dollar account, it does not have to pay attention to the fluctuation between the US dollar and the New Taiwan Coin exchange rate, thereby reducing the risk of the exchange rate volatility.
Market insiders pointed out that such a natural way of avoiding risks can partially allow NT$ to hold cash for foreign investment or use, and on the one hand, it can also temporarily avoid the risk of appreciation of NT$, and the relevant operators are very clever. However, this operation method is only suitable for enterprises such as TEU. Such large-scale enterprises can be used, and general enterprises cannot achieve the same benefits.
However, at that time, Huang Renzhao still emphasized that Taiwan Electric will still not be able to avoid all interference in the exchange rate in the future. For example, the company estimated that the calculation of the NT$ to the US dollar in the third quarter will be based on the calculation of the NT$1 exchange rate of NT$29. This is because the appreciation trend of the NT$ is quite obvious. Taiwan Electric's gross profit margin this quarter will still be sparse due to the appreciation of NT$ and the increase in overseas employees, especially the increase in employees in Arizona, the United States.
