Shares of contract chipmaker Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) yesterday gained momentum, while market capitalization hit a record amid optimism over the lead dealers said the firm has over its peers.
Investors seemed happy about news that California-based rival Globalfoundries Inc put a plan to develop a 7-nanometer process on hold, dealers said.
The activity also reflected net purchases by foreign institutional investors in the past few sessions, which sought to take advantage of TSMC’s consolidation, dealers said.
Shares of TSMC rose 1.74 percent in Taipei trading to close at NT$263.5 after peaking at NT$268, with 48.84 million shares changing hands on the Taiwan Stock Exchange, while the TAIEX was down 5.82 points, or 0.05 percent, at 11,093.75.
The stock reached NT$268 early in the morning session — its highest since Jan. 23, when TSMC shares closed at NT$266 — its capitalization was also at a record of NT$6.94 trillion (US$225.98 billion).
Most of the buying was by foreign institutional investors, who spent a net NT$3.56 billion.
So far this week, foreign institutional investors have bought a net NT$54.49 million of TSMC shares, the Taiwan Stock Exchange said.
Globalfoundries’ move is expected to reinforce TSMC’s lead in the world’s pure foundry market, analysts said.
TSMC started production of 7 nanometer chips in the first half of the year and has plans to develop 5 and 3 nanometer technologies.
China has claimed a breakthrough in developing homegrown chipmaking equipment, an important step in overcoming US sanctions designed to thwart Beijing’s semiconductor goals. State-linked organizations are advised to use a new laser-based immersion lithography machine with a resolution of 65 nanometers or better, the Chinese Ministry of Industry and Information Technology (MIIT) said in an announcement this month. Although the note does not specify the supplier, the spec marks a significant step up from the previous most advanced indigenous equipment — developed by Shanghai Micro Electronics Equipment Group Co (SMEE, 上海微電子) — which stood at about 90 nanometers. MIIT’s claimed advances last
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