Taiwan Semiconductor's US Plant Matches Taiwan Production Yields, Stock Gains

Taiwan Semiconductor Manufacturing Co TSM stock is up Monday amid reports claiming that the contract chipmaker’s production yield at the Arizona facility is at par with its Taiwan facilities.

The Taiwanese chipmaker’s yield rate in trial production at its first advanced U.S. plant is similar to comparable facilities in the southern Taiwanese city of Tainan, Bloomberg cites familiar sources.

Also Read: Nvidia, AMD, and TSM Lead AI Stock Selloff, Dragging Semiconductor ETFs Down

Recently, the Taiwan Semiconductor COO expressed optimism for the artificial intelligence industry. A Taiwan Semiconductor supplier, Scientech Corp, also made similar claims.

Taiwan Semiconductor and global partners also fast-tracked silicon photonics for AI, implying continued demand.

Taiwan Semiconductor postponed its Arizona plant production to 2025 from 2024 due to a need for more skilled workers. The contract chipmaker’s global expansion reflects attempts made by different countries to preserve their semiconductor base, which suffered immensely during the pandemic outbreak in China.

Taiwan Semiconductor stock has risen over 75% in the last 12 months. Investors can gain exposure to the stock through the SPDR S&P Emerging Asia Pacific ETF GMF and the ProShares Nanotechnology ETF TINY.

Is Taiwan Semiconductor A Good Stock To Buy?

Wall Street analysts view Taiwan Semiconductor on the whole as a Outperform, given the history of coverage over the past three months. Mark Li from Bernstein in Taiwan Semiconductor is the most optimistic, expecting a 33.33% rise in the stock in the coming year.

But looking at how the market as a whole thinks of the stock, you can reference historical price action for views on whether investors feel strongly about the stock one way or another. In the past 3 months, Taiwan Semiconductor fell 9.54%, which indicates that opinion soured on the business and how attractive it is to own based on either its stock price, or underlying fundamentals, like revenue, which rose 32.79% over the past year.

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Price Action: TSM stock is up 2.00% at $159.96 premarket at the last check Monday.

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