On Friday, TSMC's Chief Financial Officer, L. J. Huang, emphasized that exchange rate fluctuations significantly impact the company's profit margins, and TSMC will continually reassess its hedging strategies to address this challenge. He noted that exchange rates, being uncontrollable variables, have previously adversely affected the company, yet TSMC has relied on other factors to sustain profitability. To mitigate these risks, TSMC employs diverse hedging methods, such as selling dollars in the spot market, utilizing forward contracts, and transferring portions of its dollar holdings to offshore companies. Earlier, TSMC reported second-quarter earnings growth surpassing expectations and raised its 2025 revenue growth forecast, underscoring robust demand fueled by the global AI spending surge. Nevertheless, the appreciation of the Taiwan dollar by over 11% against the US dollar this year presents challenges for Taiwanese exporters, including TSMC.