What's Going On With Taiwan Semi Stock On Monday?

Taiwan Semiconductor Manufacturing Co TSM is set to play a crucial role in a potential collaboration between ByteDance Ltd and Broadcom Inc AVGO.

The two companies are discussing the development of a 5-nanometer AI processor to bolster ByteDance’s technological capabilities, Bloomberg reports.

Meanwhile Taiwan Semiconductor stock is trading lower Monday.

Also Read: Broadcom Rises As Top AI Chip Supplier After Nvidia, Thanks To Google And Meta Partnerships: Analyst

ByteDance aims to secure a steady supply of advanced chips to support its operations, which include the globally popular TikTok platform and the Chinese services Douyin and Toutiao.

In March, Broadcom informed investors about a new customer for its consumer AI accelerator business, hinting at ByteDance without naming the company.

The arrangement, if finalized, will see TSMC manufacturing the customized chip.

Key Nvidia Corp NVDA supplier Taiwan Semiconductor stock gained 74% in the last 12 months thanks to the AI frenzy.

The contract chipmaker is amid initiatives to unlock shareholder value including weighing a new method of advanced chip packaging and raising chip service prices.

Taiwan Semiconductors clients have almost booked its 3nm process to total capacity through 2026.

Investors can gain exposure to the semiconductor sector via VanEck Semiconductor ETF SMH and iShares Semiconductor ETF SOXX.

Price Action: TSM shares traded lower by 3.10% to $168.57 at the last check on Monday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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