Taiwan Semiconductor Manufacturing Co rose another 9.5% on Tuesday, extending a rally that’s helped it become the world’s 10th largest company.
With its market value rising to US$410-billion (R6.8-trillion) in early trading in Taipei, TSMC has now surpassed US giants Johnson & Johnson and Visa. The firm has added $72-billion in two days, on Monday pushing Taiwan’s equity benchmark past a record that had stood for three decades.
The latest boost to TSMC’s shares came after Intel warned last week that its 7-nanometre chips are behind schedule and it may outsource their production. The US chip maker is expected to funnel new business to TSMC, given its global lead in silicon fabrication and track record of making semiconductors for the world’s largest tech corporations.
A report on Monday suggested that Intel had placed orders with TSMC for 180 000 units of 6nm chips for 2021. Meanwhile, brokerages including Nomura Holdings and Credit Suisse Group upgraded TSMC to the equivalent of buy. — Reported by Debby Wu, (c) 2020 Bloomberg LP