TSMC’s $28 Billion Spending Blitz Ignites a Global Chip Rally
Bloomberg 1/15/2021 Debby Wu
(Bloomberg) Taiwan Semiconductor Manufacturing Co. triggered a global chip stock rally after outlining plans to pour as much as $28 billion into capital spending this year, a staggering sum aimed at expanding its technological lead and constructing a plant in Arizona to serve key American customers.
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The envisioned spending spree sent chipmaking gear manufacturers surging from New York to Tokyo. Capital spending for 2021 is targeted at $25 billion to $28 billion, compared with $17.2 billion the previous year. About 80% of the outlay will be devoted to advanced processor technologies, suggesting TSMC anticipates a surge in business for cutting-edge chipmaking. Analysts expect Intel Corp., the world’s best-known chipmaker, to outsource manufacture to the likes of TSMC after a series of inhouse technology slip-ups.
Taiwan Semiconductor Manufacturing Co. will pour as much as $28 billion into capital spending this year, a staggering sum aimed at expanding its technological lead and constructing a plant in Arizona to serve key American customers.
Taipei, Jan. 13 (CNA) Shares in Taiwan moved sharply higher by more than 260 points to close at a new high on Wednesday, thanks to a surge in the bellwether electronics sector, casting off a slowdown seen a session earlier, in a market awash in liquidity, dealers said.
TSMC Profit Surge Cements Kingpin Role in Global Chip Crunch
Bloomberg 1/13/2021
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Taiwan Semiconductor Manufacturing Co. likely chalked up its fastest pace of profit growth in a decade, after the Taiwanese company cemented its role as chipmaker of choice to the world’s technology and auto giants.
The world’s largest contract chipmaker is projected to report a 48.6% rise in 2020 net income Thursday, its speediest rate of expansion since 2010. Investors have sent its stock soaring 70% since the start of 2020, betting that the likes of Apple Inc. will continue to lean on its widening technological lead over Samsung Electronics Co. On Tuesday, Bernstein analysts raised their target on its shares to NT$800, anticipating a further gain of more than 30%.
Taiwan shares end lower, giving up early gains; TSMC up
01/12/2021 04:44 PM
CNA photo Jan. 12, 2020
Taipei, Jan. 12 (CNA) Shares in Taiwan closed lower Tuesday as investors locked in their earlier gains amid caution toward the U.S. market outlook after the authorities there warned of security threats at President-elect Joe Biden s inauguration next week, dealers said.
Contract chipmaker Taiwan Semiconductor Manufacturing Co. (TSMC), however, continued an uptrend on the back of optimism that the company will deliver positive leads in an investor conference scheduled for Thursday, helping the broader market limit losses, the dealers said.
In addition, reports that a mass evacuation of patients from a northern Taiwan hospital late Monday implying possible COVID-19 infections within the hospital sparked buying among virus prevention stocks, the dealers said.