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Taiwan's TSMC back above NT$14 trillion market cap after stock rally

Surge in price comes after chipmaker recently fell out of world’s top ten most valuable firms

Taiwan Semiconductor Manufacturing Co., Ltd. (TSMC) headquarters in Hsinchu, Taiwan.

Taiwan Semiconductor Manufacturing Co., Ltd. (TSMC) headquarters in Hsinchu, Taiwan. (AP photo)

TAIPEI (Taiwan News) — The market value of Taiwan’s leading chipmaker, Taiwan Semiconductor Manufacturing Co. (TSMC) has surpassed the NT$14 trillion (US$474.99 billion) mark in market cap.

TSMC's stock price rose on Thursday (May 5), going as high as NT$544 per share, per a CNA report. Starting from a low of NT$534, the rise of NT$10 places the tech giant’s total value back above NT$14 trillion.

Investors in Taiwan are reacting to new interest rate adjustments by the U.S. Federal Reserve. On Wednesday (May 4), the Fed raised its benchmark interest rate by 0.5%, the largest margin yet in its recent measures to counter rising inflation.

TSMC’s share price has seen volatility in recent weeks amid increasing economic uncertainty. Last week it fell out of the world’s top ten most valuable companies by market share after its share price plummeted to NT$527 on Wednesday (April 27).

In January, TSMC was ranked eighth in the world by market value. TSMC hit its highest ever price of NT$688 on January 17 this year, which was NT$161 higher than Wednesday’s low of NT$527.

Despite the price fluctuations, the outlook remains strong with TSMC predicting a leap of up to 37% in current-quarter sales at the end of last month. It also said chip capacity will stay very tight this year as the global shortage of transistors continues.