TSMC stock soars as delays expected for Intel’s next-generation chips

Semiconductor foundry added additional US$35 billion to its market capitalization Monday

TSMC (CNA photo)

TSMC (CNA photo)

TAIPEI (Taiwan News) — Shares for Taiwan Semiconductor Manufacturing Co. (TSMC) soared by more than 9 percent during Monday morning’s (July 27) trading session after rival Intel announced last week it would face significant production delays.

The Taiex closed 2.3 percent higher on Monday — breaking a 30-year record — as TSMC added an additional US$35 billion to its market capitalization, making it the 12th most valuable stock worldwide, according to Bloomberg. This helped the Taiwanese semiconductor maker reach a total market cap of more than NT$10 trillion (US$340.1 billion), according to Nikkei Asian Review.

That comes after Intel announced last Thursday (July 23) that its 7-nanometer chips will not be ready for market until 2022 or early 2023, Reuters reported. Intel also said it is considering outsourcing some production to outside semiconductor foundries, according to Reuters.

Intel’s two biggest rivals, TSMC and Samsung, are set to benefit as the U.S. semiconductor giant falters. Both Asian companies are already working on more advanced 5-nanometer chip technology, while TSMC is already mass-producing 5-nanometer chips, Nikkei Asian Review reported.

The nanometer size refers to the line width between transistors on a chip, according to Nikkei Asian Review, which means the smaller the number, the more advanced and expensive they are to make. TSMC plans to have its 3-nanometer chips ready for mass production by 2022.

Intel’s 7nm delays will now extend TSMC’s lead, which is expected to remain at least one generation ahead in terms of technology for years to come, Reuters reported. Smaller U.S. rivals Advanced Micro Devices (AMD) and Nvidia, who outsource their manufacturing to TSMC, are also expected to gain market share due to Intel’s woes.