TSMC's Stock Surges Amid Strategic U.S. Expansion and Key Talks with Elon Musk
1min read As of last week, TSMC experienced a 1.32% rise in its stock value, with a short-term decline of 1.88% over the past week, yet showcasing a robust year-to-date growth of 93.99%. The company's current market capitalization stands at $1,022.874 billion.
Recently, TSMC's shares have shown resilience, with pre-market trading indicating a rise of over 2%, pushing the stock to $204.35 at the latest update. This momentum follows a noteworthy discussion between TSMC Chairman and CEO C.C. Wei and a prominent figure in the tech industry, strongly implied to be Tesla's CEO Elon Musk. Wei revealed that during their conversation, Musk expressed concerns about chip supplies for Tesla's future technological ventures, including multi-functional robots, rather than just automobiles. Wei assured Musk that as long as financial commitments were made, chip supply would not be an issue.
Further elaboration of this engagement highlights that Wei met with Musk in the U.S., where he promised chip production capacity for Tesla, underscoring the importance of Tesla as one of TSMC's key clients, alongside tech giants Nvidia, Apple, and Amazon. Tesla's development of humanoid robots, dubbed "Optimus," aims for mass production by 2025, aligning with TSMC's assurances of meeting chip demands.
In another strategic move, TSMC received approval from Taiwan’s Ministry of Economic Affairs Investment Commission for its $3.5 billion investment plan in the U.S., marking a significant step forward for the company’s global expansion efforts. This initiative, which involves setting up a wholly-owned subsidiary in Arizona, reflects TSMC's strategy to meet the growing demand for advanced manufacturing processes in North America. The Arizona plant, set to commence construction in 2021, aims to initiate production by 2024, facilitating the production of 5nm products.
TSMC’s Arizona investment is a move to build a more comprehensive semiconductor supply chain and boost Taiwan’s high-tech industry development. Despite this overseas expansion, TSMC underlines that Taiwan will retain a leading position in terms of technical edge, with a planned workforce expansion in Taiwan to support ongoing and future growth.
