What's Going On With Taiwan Semiconductor Stock On Thursday?

Wednesday, Taiwan Semiconductor Manufacturing Co (NYSE:TSM) promoted Rose Castanares, executive vice president of the Arizona unit, as president.

Castanares, who joined the Taiwanese contract chipmaker in 1998, will take over Brian Harrison on October 1, who will retire on December 31, the Taipei Times cites in a company statement.

TSM stock is trading higher on Thursday as the U.S. Federal Reserve slashed its benchmark interest rate by 50 basis points, setting the interest rate at 4.75%-5% to spur demand for discretionary spending from U.S. companies.

Also Read: Amazon’s Leaner Structure and AI Chip Partnership with Intel Could Boost Growth: BofA Analyst

The contract chipmaker recently raised its U.S. investment by more than 60% to $65 billion, as the country granted a $6.6 billion federal grant and provided $5 billion in loans.

TSMC is a key artificial intelligence chip supplier for Nvidia Corp (NASDAQ:NVDA) and Apple Inc (NASDAQ:AAPL) and is building two advanced fabs in Arizona, leveraging the 4nm, 3nm, and 2nm processes.

It is also eyeing a third fab in Arizona, leveraging the 2nm process. Earlier this year, the company won approval to infuse $7.5 billion in the Arizona unit, reflecting its conviction in the artificial intelligence frenzy, which it also voiced at the Semicon Taiwan industry forum in Taipei.

Recent reports also indicated Taiwan Semiconductor bagging at least two smartphone chip deals concerning Alphabet Inc (NASDAQ:GOOG) (NASDAQ:GOOGL) Google, and Apple. Samsung Electronics (OTC:SSNLF) Samsung Foundry recently lost out on the Pixel 10 and Pixel 11 chip deals to Taiwan Semiconductor’s chipmaking technology.

A separate report indicated that Taiwan Semiconductor has started making Apple’s iPhone chip A16 SoC at the Arizona unit, leveraging its 5nm N4 technology.

Taiwan Semiconductor stock has risen 90% in the last 12 months. Investors can gain exposure to semiconductor stocks through the VanEck Semiconductor ETF (NASDAQ:SMH) and the iShares Semiconductor ETF (NASDAQ:SOXX).

Price Action: TSM stock is up 3.88% at $173.78 at the last check on Thursday.

Also Read:

Nvidia Considers $165M OctoAI Acquisition, Aims to Strengthen AI and Cloud Dominance

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