Taiwan Semi To Break Ground On First European Chip Plant in Germany
Portfolio Pulse from Anusuya Lahiri
Taiwan Semiconductor Manufacturing Co (TSM) will break ground on its first European plant in Dresden, Germany, next month. The plant, known as European Semiconductor Manufacturing Corp (ESMC), aims to start operations by late 2027. Key investors include Infineon, Robert Bosch, and NXP Semiconductors (NXPI). The project will address the demand for localized automotive and industrial chips. TSM shares have recently declined, partly due to comments from US Presidential candidate Donald Trump.

July 30, 2024 | 1:54 pm
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POSITIVE IMPACT
NXP Semiconductors (NXPI) is a key investor in Taiwan Semiconductor's European joint venture, holding a 10% stake. The new plant will address the demand for localized automotive and industrial chips.
NXPI's investment in TSM's new plant is likely to benefit the company by securing a supply of localized automotive and industrial chips, which could positively impact its stock.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 50
POSITIVE IMPACT
Taiwan Semiconductor Manufacturing Co (TSM) will break ground on its first European plant in Dresden, Germany, next month. The plant aims to start operations by late 2027 and will address the demand for localized automotive and industrial chips. TSM shares have recently declined, partly due to comments from US Presidential candidate Donald Trump.
The establishment of a new plant in Europe is a significant expansion for TSM, likely to positively impact its stock in the long term. However, recent political comments have caused a short-term decline in share price.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100
NEUTRAL IMPACT
Apple Inc (AAPL) is a key client of Taiwan Semiconductor. TSM's recent share decline could have a minor impact on AAPL.
As a key client of TSM, AAPL might experience minor impacts from TSM's recent share decline, but the long-term effects are uncertain.
CONFIDENCE 70
IMPORTANCE 50
RELEVANCE 30
NEUTRAL IMPACT
Nvidia Corp (NVDA) is a key client of Taiwan Semiconductor. TSM's recent share decline could have a minor impact on NVDA.
As a key client of TSM, NVDA might experience minor impacts from TSM's recent share decline, but the long-term effects are uncertain.
CONFIDENCE 70
IMPORTANCE 50
RELEVANCE 30