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

Taiwan Semiconductor Manufacturing Co TSM received government approval to inject an additional $10.26 billion to finance the construction of its second fab in Kumamoto, Japan, and a second fab in Arizona using advanced process technologies.

The Department of Investment Review approved TSMC’s investment applications, the Taipei Times reports. TSMC stock is trading higher on Friday.

TSMC makes its most advanced chips domestically, operates its research-and-development center in Taiwan, and maintains most of its capacity there.

TSMC is a key Nvidia Corp NVDA supplier and has led the global foundry revenue, holding a 62% market share in the first quarter.

The new capital injections include $5.26 billion for its Japanese venture, Japan Advanced Semiconductor Manufacturing Inc, and $5 billion for TSMC Arizona Corp to strengthen local supply chain partnerships and recruit skilled talent.

TSMC’s second Arizona fab will upgrade its process technology to 2 nanometers to meet the strong demand for artificial intelligence (AI) and its existing 3-nanometer technology.

The second Kumamoto fab will produce chips ranging from 6-nanometer to 40-nanometer processes for automotive, industrial, and high-performance computing applications.

The first Kumamoto fab will begin producing 12-nanometer, 16-nanometer, 22-nanometer, and 28-nanometer chips in the fourth quarter of this year as planned.

TSMC also won approval from the government of Kaohsiung to construct its third 2nm fab.

Goldman Sachs analyst has forecasted a rise in three- and five-nanometer chip manufacturing prices.

TSMC stock gained over 70% in the last 12 months thanks to the artificial intelligence frenzy. Investors can gain exposure to the semiconductor sector via VanEck Semiconductor ETF SMH and iShares Semiconductor ETF SOXX.

Price Action: TSM shares traded higher by 1.20% at $173.69 premarket at the last check Friday.

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

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