The value of Taiwan Semiconductor Manufacturing Co’s (TSMC, 台積電) American depositary receipts (ADRs) reached a historic high on Friday, after the leading contract chipmaker’s Taipei-listed shares continued to break records amid an artificial intelligence (AI) boom.
TSMC’s ADRs surged 5.17 percent to US$319.61, valuing the company at US$1.657 trillion as of the close of the first trading day in New York this year, which propelled its market capitalization to the sixth-largest globally, surpassing tech giants such as Meta Platforms Inc and Broadcom Inc, data released by CompaniesMarketCap showed.
The jump, driven by strong AI demand and the company’s advanced manufacturing capabilities — such as chip-on-wafer-on-substrate packaging — placed TSMC as the second-largest semiconductor company after Nvidia Corp.
Photo: Bloomberg
Nvidia remained the world’s largest stock, with a market cap of US$4.597 trillion on Friday, ahead of Apple Inc at US$4.021 trillion.
Alphabet Inc ranked third with a market value of US$3.806 trillion, followed by Microsoft Corp at US$3.515 trillion and Amazon.com Inc at US$2.421 trillion, CompaniesMarketCap’s data showed.
TSMC’s Taipei-listed shares hit a new high of NT$1,585 on Friday, lifting its market value to NT$41.1 trillion (US$1.31) last week, Taiwan Stock Exchange data indicated.
Ahead of TSMC’s earnings conference on Thursday next week, investment advisory firm Aletheia Capital (Hong Kong) Ltd in a note raised its revenue and earnings projections for TSMC for this year and next year.
“Regardless of CSPs [cloud service providers] prioritizing in-house ASICs [application-specific integrated circuit], AMD [Advanced Micro Devices Inc] gaining share, or Nvidia’s continual rapid rise, [they] all heavily rely on TSMC’s foundry services,” Aletheia Capital analysts Stefan Chang (張玄志) and Warren Lau (劉華仁) wrote.
TSMC’s revenue and earnings could more than double and triple from 2024 to next year, with the growth being driven by “capacity expansion, a richer product mix, a higher utilization rate and ongoing price hikes,” the analysts said.
Aletheia Capital also raised price targets for TSMC’s Taipei-listed shares from NT$2,100 to NT$2,400 and its ADRs from US$450 to US$500, the note said.
Shares of contract chipmaker Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) came under pressure yesterday after a report that Apple Inc is looking to shift some orders from the Taiwanese company to Intel Corp. TSMC shares fell NT$55, or 2.4 percent, to close at NT$2,235 on the local main board, Taiwan Stock Exchange data showed. Despite the losses, TSMC is expected to continue to benefit from sound fundamentals, as it maintains a lead over its peers in high-end process development, analysts said. “The selling was a knee-jerk reaction to an Intel-Apple report over the weekend,” Mega International Investment Services Corp (兆豐國際投顧) analyst Alex Huang
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) is expected to remain Apple Inc’s primary chip manufacturing partner despite reports that Apple could shift some orders to Intel Corp, industry experts said yesterday. The comments came after The Wall Street Journal reported on Friday that Apple and Intel had reached a preliminary agreement following more than a year of negotiations for Intel to manufacture some chips for Apple devices. Taiwan Institute of Economic Research (台灣經濟研究院) economist Arisa Liu (劉佩真) said TSMC’s advanced packaging technologies, including integrated fan-out and chip-on-wafer-on-substrate, remain critical to the performance of Apple’s A-series and M-series chips. She said Intel and Samsung
TRANSITION: With the closure, the company would reorganize its Taiwanese unit to a sales and service-focused model, Bridgestone said Bridgestone Corp yesterday announced it would cease manufacturing operations at its tire plant in Hsinchu County’s Hukou Township (湖口), affecting more than 500 workers. Bridgestone Taiwan Co (台灣普利司通) said in a statement that the decision was based on the Tokyo-based tire maker’s adjustments to its global operational strategy and long-term market development considerations. The Taiwanese unit would be reorganized as part of the closure, effective yesterday, and all related production activities would be concluded, the statement said. Under the plan, Bridgestone would continue to deepen its presence in the Taiwanese market, while transitioning to a sales and service-focused business model, it added. The Hsinchu
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) has approved a capital budget of US$31.28 billion for production expansion to meet long-term development needs during the artificial intelligence (AI) boom. The company’s board meeting yesterday approved the capital appropriation plan for purposes such as the installation of advanced technology capacity and fab construction, the world’s largest contract chipmaker said in a statement. At an earnings conference last month, TSMC forecast that its capital expenditure for this year would be at the higher end of the US$52 billion to US$56 billion range it forecast in January in response to robust demand for 5G, AI and
RSS