TSMC Shares Skyrocket 6.54% Amidst Ambitious U.S. Expansion Plans

In December, Taiwan Semiconductor Manufacturing Company (TSMC) experienced a notable surge in stock value, with shares increasing by 5.15% on the 23rd. This was part of a broader upward trend, marking a two-day increase of 6.54% and reaching a new peak since October 2024. The rally in share price reflects investor optimism and confidence in TSMC's strategic moves.

TSMC's ambitious plan to build a facility in the United States has gained traction, reportedly receiving approval for a $35 billion investment. TSMC is rigorously preparing for this venture, assembling a team of over 600 employees, which includes engineers and executives, to spearhead its U.S. operations. This initiative marks a critical expansion as the company aims to solidify its presence in the global semiconductor market.

TSMC Chairman Mark Liu announced plans to construct a $12 billion chip factory in Arizona starting next year. The factory is expected to operationalize in 2021, with trial production scheduled for 2023, and full-scale production in the first half of 2024, utilizing TSMC's advanced 5nm technology with a planned capacity of 20,000 wafers per month.

To support the new facility, TSMC is transferring an experienced team of over 300 current employees familiar with developing and manufacturing 5nm chips. Additionally, 300 recent graduates and young engineers qualified to work in the U.S. are being recruited and will undergo extensive training in Tainan before relocating to Arizona.

As TSMC ventures into the American market, it continues to spearhead innovation in semiconductor manufacturing by leveraging its advanced CoWoS packaging solutions. The collaboration with Arm has resulted in a pioneering 7nm chiplet system, showcasing the integration of high-performance computing systems. Successfully designed in late 2018 and produced by April, this partnership underscores a significant technological milestone and positions TSMC at the forefront of the semiconductor industry.