TSMC stock hits new high with Arizona chip plan and $6.6 billion subsidy
It is the world's largest contract chip manufacturer $Taiwan Semiconductor(TSM.US$ TSMC's stock price hit a record high on Tuesday in response to receiving a 6.6 billion dollar subsidy from the US government for plant construction in Arizona.
TSMC's Taiwan stock (TW: 2330) rose by about 4% to a record high of 817.0 Taiwan dollars. TWII's rise of over 1% also underpinned it.
$Taiwan Semiconductor(TSM.US$ The American Depositary Receipts rose 1% in overnight trading.
The US Department of Commerce announced on Monday that it will grant TSMC a 6.6 billion dollar subsidy for an advanced semiconductor plant in Phoenix, Arizona.
This move is due to TSMC's agreement to increase its investment plan for the Arizona facility to 65 billion dollars, an increase of 25 billion dollars, and to also produce the world's most advanced 2 nanometer chips at this facility. When will production begin2028It is.
TSMC benefits from AI demand
$NVIDIA(NVDA.US$ Ya $Apple(AAPL.US$ TSMC, which is a major supplier to technology majors including, announced plans for the Arizona facility a few years ago. However, since chip makers have witnessed a slump in chip demand over the past two years, and funds that can be invested in facilities have been limited, the fate of the facility has come to be questioned.
However, amid growing interest in artificial intelligence, TSMC has rapidly recovered its business performance in recent months. TSMC's cutting-edge chips play an important role as a power source for processors used to execute artificial intelligence (AI) programs.
Nvidia, which is the largest customer, is also an important player in the development of AI chips, and it is expected that it will underpin demand for TSMC products. Recently, TSMC is expecting performance improvements over the next few months against the backdrop of AI demand.
US subsidies to TSMC also reflect the strengthening of the Biden administration's efforts to bring AI development closer to the United States.
AI advertising has greatly boosted TSMC's stock price this year. TSMC's Taiwanese stock starts this yearApproximately 38% increaseI did it.
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