Taiwan Semiconductor Denies UAE Investment Rumors: Report (UPDATED)

Editor’s Note: The first paragraph has been amended to correct TSMC’s stance

Monday, Taiwan Semiconductor Manufacturing Co TSM snubbed the Wall Street journal report that claims its plans for new foreign investments are backed by United Arab Emirates (UAE) subsidies.

Recent reports indicated the Taiwanese contract chipmaker intends to collaborate with Samsung Electronics SSNLF for a project in the UAE. The initiative entails investments exceeding $100 billion, the Taipei Times reports.

Taiwan Semiconductor executives reportedly visited the UAE and discussed a plant with advanced facilities akin to Taiwan.

Taiwan Semiconductor remains focused on its U.S. expansion. It promoted Rose Castanares, executive vice president of the Arizona unit, as president last week. The company is a key supplier to Nvidia Corp NVDA and Apple Inc AAPL. The company also inked at least two smartphone chip deals. One agreement is with Apple for the iPhone and the other is with Alphabet Inc GOOG GOOGL for the Google Pixel 10 and Pixel 11.

Taiwan Semiconductor is building two fabs in Arizona involving the 4nm, 3nm, and 2nm processes. It also targets a third fab in Arizona, leveraging the 2nm process. 

The U.S. offered the chipmaker a $6.6 billion federal grant and $5 billion in loans. Last week, the U.S. Federal Reserve slashed its benchmark interest rate by 50 basis points. Setting the interest rate at 4.75%-5% to spur growth can be a tailwind for capital-intensive semiconductor companies.

Taiwan Semiconductor stock has been up 102% in the last 12 months, being the critical contract chipmaker for AI chips. Investors can gain exposure to Taiwan Semiconductor through ProShares Nanotechnology ETF TINY and First Trust S-Network Electric & Future Vehicle Ecosystem ETF CARZ.

Price Action: Taiwan Semiconductor stock is up 0.35% at $174.69 premarket at last check Monday.

Now Read:

• Wall Street Eyes Modestly Positive Start As Atypical September Rally Generates Positive Sentiment, China Cuts Rate: Intel, Palantir, Bitcoin Make Huge Moves

Image: Shutterstock