Taiwan Semiconductor Ramps Up Overseas Investments with $1.95B in Subsidies, Eyes Long-Term Growth
Portfolio Pulse from Anusuya Lahiri
Taiwan Semiconductor Manufacturing Co (TSM) has received $1.95 billion in subsidies from China and Japan since 2022 to support its overseas investments. The company is expanding in Germany and the U.S., aiming for a long-term gross margin goal of 53%. TSM stock has gained over 82% in the last 12 months.
August 26, 2024 | 2:33 pm
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POSITIVE IMPACT
Taiwan Semiconductor is a key supplier for Apple Inc (AAPL), and its expansion efforts could ensure a stable supply chain for Apple's products.
As a key supplier, TSM's expansion and financial health are important for Apple's supply chain stability, potentially benefiting Apple's operations.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 50
POSITIVE IMPACT
Taiwan Semiconductor is a key supplier for Nvidia Corp (NVDA), and its expansion efforts could ensure a stable supply chain for Nvidia's products.
As a key supplier, TSM's expansion and financial health are important for Nvidia's supply chain stability, potentially benefiting Nvidia's operations.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 50
POSITIVE IMPACT
Investors can gain exposure to Taiwan Semiconductor through the iShares Semiconductor ETF (SOXX), which may benefit from TSM's positive performance.
TSM's strong performance and growth prospects could positively impact the value of SOXX, which includes TSM in its holdings.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 30
POSITIVE IMPACT
Investors can gain exposure to Taiwan Semiconductor through the First Trust NASDAQ Technology Dividend Index Fund (TDIV), which may benefit from TSM's positive performance.
TSM's strong performance and growth prospects could positively impact the value of TDIV, which includes TSM in its holdings.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 30
POSITIVE IMPACT
Taiwan Semiconductor Manufacturing Co (TSM) has received $1.95 billion in subsidies from China and Japan to support its overseas investments, including new projects in Germany and the U.S. The company aims for a long-term gross margin goal of 53%.
The subsidies from China and Japan will support TSM's overseas investments, which are crucial for its growth strategy. The company's focus on maintaining a high gross margin and its recent stock performance indicate positive investor sentiment.
CONFIDENCE 95
IMPORTANCE 90
RELEVANCE 100