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Taiwan Semiconductor Stock: Evaluating Potential

Despite some challenges, TSMC's positive trajectory is reflected in the chart, showing a 9.79% increase after the recent report.

Story Highlights
  • TSMC has been pivotal in developing and manufacturing semiconductor products catering to diverse industries.
  • In 2021, TSMC held a significant 52.1% share of the contract chip manufacturing market.
  • TSMC maintains its leadership in technological innovation, introducing new technologies and excelling in semiconductor manufacturing.

TSMC, or Taiwan Semiconductor Manufacturing Company (NYSE:TSM), is a prominent figure in the realm of semiconductor products and technologies. Established in 1987 and headquartered in Hsinchu (Taiwan), TSMC has been pivotal in developing and manufacturing semiconductor products catering to diverse industries, including mobile devices, computers, and the automotive sector.

The company collaborates with major clients such as HiSilicon, MediaTek (TWSE:2454), Huawei, Realtek (TWSE:2379), AMD (NASDAQ:AMD), NVIDIA (NASDAQ:NVDA), Qualcomm (NASDAQ:QCOM), ARM Holdings (NASDAQ:ARM), Altera, and Xilinx, as well as with Apple (NASDAQ:AAPL), Broadcom (NASDAQ:AVGO), Conexant, Marvell (NASDAQ:MRVL), Intel (NASDAQ:INTC) and others.

TSMC is actively expanding its production facilities and global presence, with offices in various countries such as China, India, Japan, South Korea, the Netherlands, and the USA.

In 2021, TSMC held a significant 52.1% share of the contract chip manufacturing market. Notably, in 2018, the company achieved a breakthrough by developing technologies for producing microchips with standards ranging from 90 to 5 nanometers.

As of the latest financial report on January 18, 2024, reflected in the earnings calendar, TSMC’s profit and revenue slightly declined but surpassed investors’ expectations. Annual revenue decreased by 1.5% to $19.62 billion, and net profit fell by 19.3% to $7.56 billion. Despite this, TSMC maintains its leadership in technological innovation, introducing new technologies and excelling in semiconductor manufacturing.

The company’s commitment to quality and reliability is reinforced by advanced technologies, experience, and streamlined automated processes that enhance production efficiency and reduce costs, ensuring competitiveness in the market.

Looking beyond the recent quarterly results, TSMC’s focus on future growth is evident through planned capital expenditures of $28 to $32 billion for the current year. The company aims to allocate funds for the operation of its plant in Japan, the construction of two factories in Arizona and one in Germany, and continued investment in advanced technological processes, mature technology, and packaging technologies.

Despite some challenges, TSMC’s positive trajectory is reflected in the chart, showing a 9.79% increase after the recent report.

TSMC's positive trajectory is reflected in the chart, showing a 9.79% increase after the recent report.
TSMC’s positive trajectory is reflected in the chart, showing a 9.79% increase after the recent report.

Given the company’s ambitious plans for expansion and innovation, investors are keenly observing TSMC’s revenue prospects for 2024 and beyond. TSMC’s commitment to educational programs and research further supports analysts’ expectations of sustained growth. The company’s active role as a key player in the semiconductor market and its dedication to offering innovative solutions and improving product quality positions TSMC as a noteworthy entity in the stock market’s landscape.

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