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Taiwan TSMC beats Intel to become world’s largest chip maker by market cap

Wealth Magazine Chairman Xie Jinhe said Intel’s acquisition deal failed to drive share price

(by iphonedigital, Flickr)

(by iphonedigital, Flickr) (Wikimedia Commons photo)

TAIPEI (Taiwan News) -- Taiwan's Wealth Magazine Chairman Xie Jinhe (謝金河) said on Facebook Sunday that Taiwan Semiconductor Manufacturing Co. (2330:TT)(TSM:US) topped the world's largest chip maker Intel Corp. (INTC:US) in terms of market capitalization last week.

Intel's share price dropped after its US$15.3 billion acquisition of Israeli autonomous vehicle technology firm Mobileye was announced last Monday. The pricey acquisition of Mobileye was said to help Intel branch out to driverless systems for global automakers, but caused its share price to drop and resulted in its market capitalization shrinking to US$167.14 billion, which is smaller than TSMC's by US$1.9 billion from the American Depositary Receipts (ADRs).

TSMC's market cap reached US$169.01 billion as of last week, according to Xie. “In terms of pure-play chip makers, TSMC has become the world's largest one by market cap, though Taiwanese media has yet to notice the big news," he said.

According to market research firm Statistia, the top semiconductor companies in 2016 ranked by sales revenue are Intel (U.S.), Samsung (South Korea), TSMC (Taiwan), Qualcomm (U.S.), Broadcom (U.S.), SK Hynix (South Korea), Micron (U.S.), TI (U.S.), Toshiba (Japan), NXP (Europe) and MediaTek (Taiwan).

On Friday, Intel's share price closed flat on Nasdaq.