Taiwan Semiconductor Acquires Tainan Facility For $531M, Plans Major Expansion
Portfolio Pulse from Anusuya Lahiri
Taiwan Semiconductor Manufacturing Co (NYSE:TSM) has acquired Innolux Corp’s flat-panel display plant in Tainan for $530.6 million, aiming to leverage the facility for future operations. The company plans to double its CoWoS capacity and has ratified $29.62 billion in capital expenditures for new fabs and manufacturing facilities. TSM has gained 89% in the last 12 months, with analysts maintaining a positive outlook and a $250 price target. Investors can gain exposure through ETFs like iShares Semiconductor ETF (NASDAQ:SOXX) and First Trust NASDAQ Technology Dividend Index Fund (NASDAQ:TDIV).
August 19, 2024 | 11:18 am
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POSITIVE IMPACT
Investors can gain exposure to Taiwan Semiconductor through the iShares Semiconductor ETF (NASDAQ:SOXX). TSM's recent acquisition and expansion plans are likely to positively impact SOXX, given TSM's significant weight in the ETF.
TSM's growth and expansion plans are likely to positively impact SOXX, as TSM is a significant component of the ETF.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 50
POSITIVE IMPACT
Investors can gain exposure to Taiwan Semiconductor through the First Trust NASDAQ Technology Dividend Index Fund (NASDAQ:TDIV). TSM's recent acquisition and expansion plans are likely to positively impact TDIV, given TSM's significant weight in the ETF.
TSM's growth and expansion plans are likely to positively impact TDIV, as TSM is a significant component of the ETF.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 50
POSITIVE IMPACT
Taiwan Semiconductor Manufacturing Co (NYSE:TSM) acquired Innolux Corp’s flat-panel display plant in Tainan for $530.6 million. The acquisition is part of TSM's strategy to double its CoWoS capacity and expand its manufacturing capabilities. The company has also ratified $29.62 billion in capital expenditures for new fabs and facilities.
The acquisition of the Tainan facility and the significant capital expenditures indicate strong growth and expansion plans for TSM. This is likely to positively impact the stock price in the short term.
CONFIDENCE 95
IMPORTANCE 90
RELEVANCE 100