Shares of Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), the world’s largest contract chipmaker, were given a boost yesterday by US-based chip equipment supplier Applied Materials Inc’s upbeat outlook for the coming months, dealers said.
That forecast left investors more optimistic about the global semiconductor business and that it may finally be climbing out of a slump, they said.
TSMC shares closed up 1.91 percent at NT$80 with 63.98 million shares changing hands, while the TAIEX ended up 0.31 percent at 7,894.36.
Heavy buying of TSMC emerged as soon as the local bourse opened. Investors reacted positively to Applied Materials’ projection that earnings per share for its fiscal second quarter would range between US$0.20 and US$0.28, higher than the US$0.16 estimated by analysts.
Analysts said the optimistic assessment for the company’s fiscal second quarter, ending in April, was made based on large spending from the US company’s major clients, such as TSMC and Samsung Electronics.
They said the spending by the big chipmakers reflected a market forecast that the global semiconductor sector will bottom out in the quarter to next month on the back of rising demand, largely from mobile device manufacturers.
Analysts said that with its strong technological edge, TSMC would be among the industry leaders most likely to benefit from a rebound in the sector.
Earlier, TSMC said that it expected to outperform the global integrated circuit sector and even the foundry business in terms of sales growth.