Taiwan Semiconductor Manufacturing Corporation (NYSE:TSM) continues to develop 2nm technology at home and abroad despite challenges ranging from geopolitical tensions to supply chain constraints to natural disasters such as earthquakes and hurricanes. is being strengthened.
Commercialization of 2nm technology by contract chipmakers at Hsinchu’s new Baoshan factory is on track for 2025.
Supply Chain says Huguoshengshan 2nm wafers will cost twice as much as 4nm and 5nm wafers at more than $30,000, highlighting the moat reflected in pricing power, The Commercial Times said. is reporting.
Also read: What’s happening with Nvidia stock on Thursday?
The contract chipmaker’s advanced manufacturing business remains in high demand for artificial intelligence and smartphones, but it faces pressure from falling stock prices and supply issues in the industry.
The investment in foundries is significant. Research institutes estimate that research and development for the 3nm process will cost $4 billion to $5 billion, and construction of a 3nm factory will cost at least $15 billion to $20 billion.
Taiwan Semiconductor is eyeing production of 2nm chips at at least two U.S. factories under construction. It has spent more than $65 billion on facilities in Arizona. According to a report in Nikkei Asia, key customers at the company’s Arizona factory include NVIDIA Inc. (NASDAQ: NVDA), Advanced Micro Devices Inc. (NASDAQ: AMD), and Apple Inc. (NASDAQ: AAPL).
The contract chip maker recently expanded its collaboration with chip packaging and test service provider Amkor Technology, Inc. (NASDAQ:AMKR), moving advanced packaging and testing capabilities to Arizona to capitalize on the AI frenzy. I am making use of it. Amkor told Nikkei Asia that it will invest $2 billion in a chip packaging and testing facility in Peoria, Arizona.
Taiwan Semiconductor and Amkor will jointly develop CoWoS (Chip on Wafer on Substrate) and Integrated Fan-Out (InFO).
Nvidia is leveraging Taiwan Semiconductor’s CoWoS chip packaging technology to increase the computational power of its high-performance graphics processors. Apple adopted InFO chip packaging technology for the core chip processors of iPhones and Macbooks.
Taiwan Semiconductor’s stock price has risen more than 107% in the past 12 months.
Investors can gain exposure to semiconductor ETFs through the EA Series Trust Strive US Semiconductor ETF (NYSE:SHOC) and the Columbia Semiconductor and Technology ETF (NYSE:SEMI).
Price Action: TSM stock was down 0.21% at a pre-market price of $179.10 at last check on Friday.
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