TSMC shares soar on profit estimates, Japan factory deal

[superadmin]

TAIPEI – Shares in Taiwan's microchip giant TSMC soared on today’s forecasting, posting better-than-expected profits for the rest of the year and following the announcement of plans to build its first factory in Japan.

The world is in the midst of a severe shortage of silicon microchips that are used in everything from cars and missiles to phones and games consoles.

Taiwan Semiconductor Manufacturing Company (TSMC) operates the world's largest silicon wafer factories and produces some of the smallest – and most advanced – microchips.

Yesterday, the tech giant said it expected as much as US$15.7 billion (RM65.3 billion) in revenue for the fourth quarter, higher than analyst estimates, as demand for chips remained strong.

Net income in the third quarter rose a forecast-topping 14% to US$5.6 billion.

The news was music to the ears of investors, with TSMC's share price rising more than 4.5% in morning trade in Taipei.

TSMC's factories are already operating at full capacity and the company warned production will likely remain stretched next year.


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