Taiwan’s TSMC, the world’s largest contract chipmaker, has forecasted double-digit growth in 2024 due to the booming demand for high-end chips used in artificial intelligence (AI). The company’s optimistic outlook has led to a surge in its stock price, with shares rising as much as 6% in Taipei and almost 10% in the U.S.-listed stocks.
As a major supplier to tech giants like Apple Inc and Nvidia, TSMC’s positive projection has also had a positive impact on the broader tech market in Taiwan. This includes AI server makers Quanta and Wistron, whose stocks jumped by around 8% and 9% respectively.
Moreover, TSMC’s announcement about evaluating the construction of a third fab in Kaohsiung city, Taiwan, to produce advanced 2 nanometre chips has garnered support from the government. This decision counters criticisms from opposition politicians who have accused the government of allowing TSMC to build fabs overseas, thereby weakening the domestic sector. Economy Minister Wang Mei-hua emphasized that TSMC’s domestic expansion plans show the fallacy of such claims, asserting that investment in Taiwan will definitely increase.
Both TSMC and the government have repeatedly emphasized that Taiwan will remain the primary production hub for the most advanced chips. Kaohsiung Mayor Chen Chi-mai highlighted the city’s efforts in ensuring stable infrastructure, such as reliable water and power supplies, for TSMC.
Given TSMC’s significance to Taiwan’s trade-dependent economy, it is often referred to as the sacred mountain protecting the country. As TSMC’s optimistic outlook continues to fuel confidence in the AI boom, it is expected to drive further growth and investment in the Taiwanese tech industry.
Frequently Asked Questions (FAQs) Related to the Above News
What has led to Taiwan's TSMC forecasting double-digit growth in 2024?
The booming demand for high-end chips used in artificial intelligence (AI) has led to Taiwan's TSMC forecasting double-digit growth in 2024.
How has TSMC's forecast impacted its stock price?
TSMC's optimistic outlook has led to a surge in its stock price, with shares rising as much as 6% in Taipei and almost 10% in U.S.-listed stocks.
Which tech giants does TSMC supply?
TSMC is a major supplier to tech giants like Apple Inc and Nvidia.
What impact has TSMC's positive projection had on the broader tech market in Taiwan?
TSMC's positive projection has had a positive impact on the broader tech market in Taiwan, with AI server makers Quanta and Wistron experiencing a jump in their stocks by around 8% and 9% respectively.
How has TSMC's announcement about evaluating the construction of a third fab in Kaohsiung city been received by the government?
TSMC's announcement about evaluating the construction of a third fab in Kaohsiung city has garnered support from the government, countering criticisms from opposition politicians.
Where will TSMC focus its production of the most advanced chips?
Both TSMC and the government have repeatedly stated that Taiwan will remain the primary production hub for the most advanced chips.
What efforts has Kaohsiung city made to support TSMC's expansion plans?
Kaohsiung city has made efforts to ensure stable infrastructure, such as reliable water and power supplies, for TSMC.
What role does TSMC play in Taiwan's economy?
TSMC is significant to Taiwan's trade-dependent economy and is often referred to as the sacred mountain protecting the country.
How is TSMC's optimistic outlook expected to impact the Taiwanese tech industry?
TSMC's optimistic outlook is expected to drive further growth and investment in the Taiwanese tech industry, fueled by the confidence in the AI boom.
Please note that the FAQs provided on this page are based on the news article published. While we strive to provide accurate and up-to-date information, it is always recommended to consult relevant authorities or professionals before making any decisions or taking action based on the FAQs or the news article.
