The recent meeting of Taiwan Semiconductor Manufacturing Company (TSMC)NYSE: TSM, TPE: 2330 the stock added $ 72 billion to the value of the company, raising its net worth to $ 410 billion, putting the valuation past that of Visa NYSE: V and just behind Berkshire Hathaway NYSE: BRK.A.
TSMC’s market capitalization is just over $ 400 billion.
It is now the world’s 10th largest share
– Tim Culpan (@tculpan) July 28, 2020
After its US-listed ADR shares rose 12.65% to a record $ 83.25 during the US trading day, TSMC reached 466.5 NTD within the first 10 minutes of trading in Taipei. Since the TAIEX exchange has a circuit breaker, which stops trading after a stock rises or loses 10% in one day, trading was halted and the shares pulled back mid-morning session.
Due to TSMC’s weighting on the TAIEX, where it makes up nearly 25% of the stock market, the market index reached new historical highs of 13,000. The TAIEX ended 2019 as the world’s best-performing markets, and with TSMC’s recent acquisitions, the record 12,495 it reached in February 1990 is way past.
United Microelectronics TPE: 2303, another one of Taiwan’s pure-play foundries, and one of TSMC’s smaller rivals, also benefited from the mid-morning rally in Taipei that saw its maximum 10% gain for a 12-year high of 23.85 NTD.
The TSMC rally comes as Intel NASDAQ: INTC reports some of its “worst gains ever” and a slowdown in the 7nm process node – key to remain competitive against AMD NASDAQ: AMD – meant an almost universal downgrade by analysts. Intel has already started booking orders with TSMC to secure the coveted capacity at its factories.
A report from China Times, Based in Taipei, Intel has already signed a deal with TSMC to expand capacity. The report also states that AMD NASDAQ: AMD Becomes TSMC’s Largest Customer on the 7nm Node Next Year, With Reported Orders of 200,000 Wafers, Due to Apple’s NASDAQ: APPL go to 5nm. In addition, it has also been reported that AMD and Intel are competing for whatever capacity they can get in light of TSMC canceling Huawei’s contract.