Name of opportunity: 👀
Taiwan Semiconductor Manufacturing Co
In trial production: 🧪
TSMC’s Arizona ‘fab’ or ‘fabrication’ (a specialist manufacturing facility that produces semiconductors) will be the company’s second on US soil. The first in Washington has been a subsidiary of TSMC since 2000, after being initially set up as a joint venture with other tech companies. The plant in Arizona will be the most advanced semiconductor wafer manufacturer in the US when it launches. The planned launch in 2024 has been delayed due to labour shortages and cost issues. But in exciting news for the tech industry as well as the stock market, test production at the Arizona foundry has revealed that it is able to produce wafers at a similar rate to the production at foundries in Taiwan, with an impressive yield rate. While the exact figure has not been shared by TSMC, it is a key metric to measure the success of the foundry, which will start production for real next year.
How hot is this investment opportunity? 🔥🔥🔥
Over the past day (since this news came out), Taiwan Semiconductor Manufacturing Co stock has risen by 2.97% at the time of writing - and looks like it may be likely to keep going! Analysts predict the price of Taiwan Semiconductor Manufacturing Co. will increase from $160.60 to $167.20 in the next 12 months. If you invested $1000, you might profit $41.12.
One high profile investor who believes in TSMC is Daniel Loeb, the money manager at his hedge fund Third Point. During the second quarter, Third Point bought 850,000 more shares in Taiwan Semiconductor, bringing holdings to a total of 2 million shares. Loeb has shared a belief that demand for AI will drive "substantial earnings growth for the company”,with another reason being that he predicts cyclical recovery for the company, which has seen its stock price drop recently. It’s currently rated as a ‘Buy’, teetering on the edge of ‘Strong Buy’.
More than satis-factory: 🏭
Taiwan Semiconductor Manufacturing Co Ltd is a Taiwan-based company mainly engaged in the provision of integrated circuit manufacturing services.TSMC currently operates 12 fabs, mostly in Taiwan where the HQ is located, with others in the US, China and Japan. It’s the largest company in its home country, as well as the world's largest semiconductor foundry. According to some estimates, 92% of the world’s most advanced semiconductors are made by Taiwan Semiconductor.
Which neme?: 🔍
‘What Analysts Say’ and ‘Microchips’
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