Taiwan Semiconductor Expands Overseas Investments with $1.95 Billion Subsidy to Aim for Long-Term Growth – Taiwan Semiconductor (NYSE:TSM)

Taiwan Semiconductor Manufacturing TSMC It is set to receive NT$62.5 billion (US$1.95 billion) in subsidies from China and Japan from 2022 onwards.

The company has received NT$7.96 billion in subsidies from China and Japan in the first half of 2024, after earning NT$47.55 billion in 2023 and NT$7.05 billion in 2022, according to the Taipei Times, citing Taiwan Semiconductor’s financial data.

Related article: AMD opens new R&D center in Taiwan to expand AI innovation

Taiwan Semiconductor, a major supplier to Apple Inc. AAPL and Nvidia Corp NVDA The company said the subsidy would help fund investments in Kumamoto prefecture and the Chinese city of Nanjing.

Taiwan Semiconductor also has operations in Germany and the U.S. Last week, the company began construction on an $11 billion German factory with 5 billion euros in government subsidies.

Taiwan Semiconductor is ready to raise prices for overseas projects to ensure it achieves its long-term gross margin target of 53%.

Taiwan Semiconductor’s shares have risen more than 82% in the past 12 months thanks to the AI ​​boom, and investors can get exposure to the stock through the iShares Semiconductor ETF. socks First Trust Nasdaq Technology Dividend Index Fund TDIV.

Price Action: TSM shares were trading at $168.92, down 1.38%, as of last check on Monday.

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