Fri, Aug 31, 2018 - Page 12 News List

TSMC shares rise, capitalization hits a record high

Staff writer, with CNA

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.

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