Taiwan Semiconductor's Capex Plans Boost These Chip Stocks, Jim Cramer Says
Wednesday, Jan 22, 2025 1:29 pm ET
3min read Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM), the world's largest contract chipmaker, recently announced its capital expenditure (Capex) plans for 2024, which are expected to have a positive impact on the broader semiconductor industry. The company's strategic allocation of resources, particularly in advanced process technologies, specialty technologies, and advanced packaging, is likely to boost the stocks of its key suppliers and partners. CNBC's Jim Cramer has highlighted the potential benefits of TSMC's Capex plans for the chip industry, emphasizing the importance of the company's investments in driving growth and innovation.
TSMC's Capex plans for 2024, ranging between $28 billion and $32 billion, reflect the company's commitment to investing in key areas to maintain its technological leadership and support its growth strategy. The company's strategic allocation of resources is expected to have a positive impact on the broader semiconductor industry, particularly on the stocks of its key suppliers and partners.
One of the key areas TSMC is focusing on is advanced process technologies, which account for 70 to 80 percent of its 2024 Capex. The company's investment in advanced process technologies is expected to drive growth and innovation in the semiconductor industry, as well as support the development of next-generation chips. TSMC's focus on advanced process technologies is likely to benefit the stocks of companies that supply the equipment and materials needed for the production of these chips.
Another area TSMC is investing in is specialty technologies, which account for 10 to 20 percent of its 2024 Capex. The company's investment in specialty technologies is expected to cater to specific market demands and expand its global footprint. TSMC's focus on specialty technologies is likely to benefit the stocks of companies that specialize in these technologies and have a strong presence in the regions where TSMC is expanding.
TSMC is also investing in advanced packaging, which accounts for around 10 percent of its 2024 Capex. The company's investment in advanced packaging is expected to enhance the performance, power efficiency, and form factor of its chips. TSMC's focus on advanced packaging is likely to benefit the stocks of companies that specialize in advanced packaging technologies and have a strong presence in the semiconductor industry.
In conclusion, TSMC's Capex plans for 2024 are expected to have a positive impact on the broader semiconductor industry, particularly on the stocks of its key suppliers and partners. The company's strategic allocation of resources in advanced process technologies, specialty technologies, and advanced packaging is likely to drive growth and innovation in the semiconductor industry and support the development of next-generation chips. CNBC's Jim Cramer has highlighted the potential benefits of TSMC's Capex plans for the chip industry, emphasizing the importance of the company's investments in driving growth and innovation.
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