TSMC Boosts US Investment to $165 Billion, Expands Chip Production in Arizona
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: Newsfilter
- Accelerated Investment: TSMC plans to increase capital expenditures in the U.S. by over 30% to meet demand for AI chips, demonstrating strong conviction in the AI mega trend and further solidifying its leadership in the global semiconductor market.
- Land Expansion: TSMC has acquired an additional 900 acres in Arizona to build a 'gigafab cluster', which not only enhances production capacity but also provides flexibility for future expansions, ensuring rapid market responsiveness.
- Trade Agreement Impact: The newly signed trade deal with the U.S. caps tariffs on Taiwanese goods at 15% and commits $250 billion in direct investments, further promoting TSMC's investments in the U.S. and strengthening supply chain stability.
- Production Progress: TSMC's first U.S. fab has begun mass production, achieving yields and technology levels comparable to its leading facilities in Taiwan, proving that its manufacturing excellence can be replicated in the U.S., boosting customer confidence and driving stock price increases.
Analyst Views on TSM
Wall Street analysts forecast TSM stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for TSM is 348.25 USD with a low forecast of 290.00 USD and a high forecast of 400.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
9 Analyst Rating
8 Buy
1 Hold
0 Sell
Strong Buy
Current: 327.110
Low
290.00
Averages
348.25
High
400.00
Current: 327.110
Low
290.00
Averages
348.25
High
400.00
About TSM
Taiwan Semiconductor Manufacturing Co Ltd is a Taiwan-based integrated circuit foundry service provider. The Company is primarily engaged in integrated circuit manufacturing services. It offers advanced process technologies, specialised process solutions, advanced photomask and silicon stacking, and packaging-related technologies, while supporting a comprehensive design ecosystem. The Company's products serve diverse electronic sectors including artificial intelligence, high-performance computing, wired and wireless communications, automotive and industrial equipment, personal computing, information applications, consumer electronics, smart internet of things, and wearable devices.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
