Taiwan’s Chip Giant Soars to New Heights
The world’s largest contract chipmaker, Taiwan Semiconductor Manufacturing Co (TSMC), has reached unprecedented success, with its shares surging to a record high on Friday. This remarkable feat follows the company’s announcement of forecast-beating third-quarter earnings and a promising outlook for artificial intelligence (AI) demand.
A Rosy Outlook for AI Demand
TSMC’s shares closed at NT$1,085 (US$33.77), a 4.8% increase, surpassing its previous record of NT$1,080 on July 11. This milestone gives TSMC a market capitalization of approximately US$874 billion, the highest among Asian-listed companies. The benchmark index also saw a significant 1.9% increase.
Political Uncertainty Looms
However, TSMC faces potential political uncertainty. The US Commerce Department is reportedly investigating whether the company has been producing AI or smartphone chips for China’s Huawei, which has been restricted by US export controls. Despite this, TSMC remains committed to complying with laws and regulations, including export controls.
Surge in AI Adoption
TSMC’s success can be attributed to the growing demand for AI across various industries. The company has seen a 54% jump in quarterly profit, raised its revenue forecast for the year, and expects the next five years to be “healthy.” Analyst Venson Tsai believes the stock has room for further growth, citing the rising wave of AI adoption.
Compliance and Transparency
In response to the investigation, TSMC assured that it would take prompt action to ensure compliance with laws and regulations. This includes conducting investigations and communicating with relevant parties, such as customers and regulatory authorities.
A Bright Future Ahead
As the world increasingly adopts AI technology, TSMC is poised to continue its upward trajectory. With its commitment to compliance and innovation, the company’s share price is likely to reflect the growing demand for AI in the long term.
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