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Taiwan’s TSMC stock price hits new 6-month high, price target now eclipses NT$1,000

Manufacturer’s price buoyed by speculation chip shortage will last into 2022

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The logo of Taiwan Semiconductor Manufacturing Co (TSMC) at its headquarters, in Hsinchu, Taiwan, January 19, 2021. (Reuters)

The logo of Taiwan Semiconductor Manufacturing Co (TSMC) at its headquarters, in Hsinchu, Taiwan, January 19, 2021. (Reuters)

TAIPEI (Taiwan News) — Share prices for Taiwan Semiconductor Manufacturing Corporation (TSMC) stock reached a new six-month high of NT$626 (US$22.69) during Monday morning’s (Sept. 6) trading session.

Investors in the U.S. also readjusted TSMC’s price target (its projected future share price) to NT$1,014, according to a UDN report.

In response to the ongoing global shortage in semiconductors, TSMC raised prices for its products last month, increasing prices for the 7nm and 5nm advanced processes by 7% and 9%, respectively, while prices for its other processors jumped by about 20%.

This has investors optimistic about TSMC’s growth, as next year’s gross profit margin is expected to remain at more than 50%, with net profit per share in the range of NT$26 to NT$28.

Investors in the U.S. expect the shortage of foundry capacity will continue into next year and so have increased the target price of TSMC stock to NT$1,014.

With a surge in buying orders on Monday, TSMC’s market value increased by NT$155.5 billion to reach NT$16.23 trillion and added about 50 points to the Taiex index.


Updated : 2021-09-22 05:20 GMT+08:00