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Shares of Taiwan’s TSMC soar after Intel’s apparent retreat in chip manufacturing
- Taiwan Semiconductor Manufacturing Co’s shares received a boost from a report suggesting Intel may outsource its production of advanced chips
- Monday’s rally made TSMC the 12th most valuable stock worldwide, ahead of US retail giant Walmart
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Shares of Taiwan Semiconductor Manufacturing Co (TSMC) jumped on Monday after US chip maker Intel Corp signalled it may stop manufacturing its own chip components.
Intel last week indicated that it may give up manufacturing its own chip designs after falling far behind schedule developing its newest semiconductor process technology.
Shares in TSMC, the world’s largest contract chip maker, rose nearly 10 per cent to a record high, joining a rally of Intel’s rivals including Advanced Micro Devices.
Monday’s rally in TSMC, which was the most that the chip producer for the likes of Apple has climbed in a day, added more than US$30 billion to its market capitalisation, while putting equity benchmark the Taiwan Capitalisation Weighted Stock Index (Taiex) in a position to break a record that has stood for three decades.
That makes TSMC the 12th most valuable stock worldwide, ahead of US retail giant Walmart. TSMC wields so much influence over Taiwan’s 921-member stock benchmark that without it, the Taiex would be down about 2 per cent this year versus its 5 per cent gain.
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